ABSTRACT

Cost volume profit analysis is a management tool that will be employed in making plausible decisions which have cost-volume (level of activity,.) and pro/li implications. There is no doubt that if management will not sufficient apply cost-volume profit analysis in their decision making process, it will result in substandard decisions low performance and profitability. This study is set out to determine the effect of cost-volume profit analysis in the decision making manufacturing industries. The study combined both survey research and longitudinal research design. Both primary and secondary data were used /r statistical analysis. Primary data was collected from questionnaires while secondary data was collected from the management accounts of the two selected manufacturing industries. They were analyzed using regression and correlation techniques. The results revealed that the sales value u/a product and the quantity the product manufactured has a positive effect on profit made on the product, also that there is a significant relationship between the cost of production and profit. The re-order and economic order quantity were also determined as a base  assessing decision making opportunities. Based on the result, the researcher recommends that manufacturing industries should always adopt cost-volume profit analysis in their decision making.