Effects Of The Application Of Cost-Volume-Profit Analysis On Profitability Of Manufacturing Organizations (A Study Of Selected Industries In Aba, Abia State)
ABSTRACT
Manufacturing
firms in Nigeria do not give due consideration to the three variable and
assumptions of cost-volume-profit (CVP) analysis in the decision process. This
result in low quality decision and low performance/ profitability. This
research work was set out to examine the application of cost --volume - profit
analysis in manufacturing firms, and the resultant effect of inefficiency in
its application. The research methodology was designed in a manner that ensured
adequate representation of the manufacturing sector in Nigeria, hence the emphasis
on PZ industries PLC and Nigeria breweries PLC which are the typical
manufacturing firm in Nigerian. Simple regression was used for the test of
hypothesis formulated for the study. The research finding established the long
held speculation of lack of knowledge of CVP analysis by manufacturing firms
and decision makers and inadequate exhibited where it is applied. In
furtherance of the research objective, the of the research measure on how to
revert the situation, increase profitability and the reaping of the resultant
benefit thereof The focus of the recommendation is that each of the three
variable of cost- volume-profit analysis (cost, volume, analysis) should be
considered since no mean decision could be reached, if any of the variable is
isolated especially for a manufacturing concern in the modem business
environment. Finally, it was concluded that management of manufacturing firms
must be able to apply and efficiently take the cost-volume profit analysis for
increased survival, growth and profitability of the sector.
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NWAFOR, O (2022). Effects Of The Application Of Cost-Volume-Profit Analysis On Profitability Of Manufacturing Organizations (A Study Of Selected Industries In Aba, Abia State). Repository.mouau.edu.ng: Retrieved Nov 24, 2024, from https://repository.mouau.edu.ng/work/view/effects-of-the-application-of-cost-volume-profit-analysis-on-profitability-of-manufacturing-organizations-a-study-of-selected-industries-in-aba-abia-state-7-2
OZULUONYE, NWAFOR. "Effects Of The Application Of Cost-Volume-Profit Analysis On Profitability Of Manufacturing Organizations (A Study Of Selected Industries In Aba, Abia State)" Repository.mouau.edu.ng. Repository.mouau.edu.ng, 13 Oct. 2022, https://repository.mouau.edu.ng/work/view/effects-of-the-application-of-cost-volume-profit-analysis-on-profitability-of-manufacturing-organizations-a-study-of-selected-industries-in-aba-abia-state-7-2. Accessed 24 Nov. 2024.
OZULUONYE, NWAFOR. "Effects Of The Application Of Cost-Volume-Profit Analysis On Profitability Of Manufacturing Organizations (A Study Of Selected Industries In Aba, Abia State)". Repository.mouau.edu.ng, Repository.mouau.edu.ng, 13 Oct. 2022. Web. 24 Nov. 2024. < https://repository.mouau.edu.ng/work/view/effects-of-the-application-of-cost-volume-profit-analysis-on-profitability-of-manufacturing-organizations-a-study-of-selected-industries-in-aba-abia-state-7-2 >.
OZULUONYE, NWAFOR. "Effects Of The Application Of Cost-Volume-Profit Analysis On Profitability Of Manufacturing Organizations (A Study Of Selected Industries In Aba, Abia State)" Repository.mouau.edu.ng (2022). Accessed 24 Nov. 2024. https://repository.mouau.edu.ng/work/view/effects-of-the-application-of-cost-volume-profit-analysis-on-profitability-of-manufacturing-organizations-a-study-of-selected-industries-in-aba-abia-state-7-2