CVP RRL
CVP RRL
CVP RRL
https://www.researchgate.net/publication/377305046_Effective_Cost-Volume_-
Profit_Analysis_Pondering_Policy_Implications?_sg=wVxn6hd5Gkl-
HnTwZw48YxwIuJJzvckEwR_4dRDBGoxy1XjibqelhAx3-B3wcYOcQ_Sb_rQqa2t-
2xo&_tp=eyJjb250ZXh0Ijp7ImZpcnN0UGFnZSI6Il9kaXJlY3QiLCJwYWdlIjoiX2RpcmVjdCJ9fQ
Abdullahi, Sadiq & Bello, Sulaimon & Mukhtar, Ibrahim & Musa, Muhammed. (2017). Cost-Volume-Profit
Analysis as a Management Tool for Decision Making In Small Business Enterprise within Bayero University, Kano.
IOSR Journal of Business and Management. 19. 40-45. 10.9790/487X-1902014045.
https://www.researchgate.net/publication/313817862_Cost-Volume-
Profit_Analysis_as_a_Management_Tool_for_Decision_Making_In_Small_Business_Enterprise_within_Bayero_U
niversity_Kano
Findings suggest that there is no significant difference between the application and awareness of CVP
analysis, most of the small business enterprises ignorantly applied cost volume profit analysis in the course of doing
their business, without knowing that the managerial decisions they took most times is related to cost volume profit
analysis. It was also shown that small business enterprise can apply cost volume profit analysis to great advantage as
it aids the management decision making process.
Based on the above conclusions, it was recommended that cost volume profit analysis and other
management accounting tools be introduces to small business enterprise in other to improve their productivity.
Managers of small businesses should utilize the advantage of being situated in an academic environment to attend a
crash course on cost volume profit analysis and other management decision making tools to broaden their scope in
other to make better management decisions.
Conducted CVP analysis made us draw the conclusions, that it is one of the most common tools
used by hotel organizations to submit high utility data, as part of a number of effective
management accounting methods applied to the hotel industry.
Surveyed hotels, exhibit well-developed information systems with capabilities for data extraction on a number of
components of the volume of activity (bed nights) in the hotel sector – occupancy rate and load factors depending on
seasonality; bed nights for both children and adults; one night guest and average guest stay at the hotel; bed nights in
view of guest nationality, etc. In view of the significance of a detailed analysis of factors determining the volume of
activity but also having effect on the CVP variables, we believe that implementation of a standardized approach to
measure said effect will be seen as a tangible contribution to research in this area. Such an approach should be
consistent with the analysis on identified areas/centres of responsibility.
Cost-Volume-Profit analysis is a tool of cost accountants aiding in the choice of an optimal course of action in the
solution of a managerial problem. C-V-P is a limited analysis since all the needs of management in determining the
optimal strategy are not fulfilled. Factors pertinent to the choice of the optimal strategy under uncertainty are
variables, although traditional C-V-P treats these factors as constants. Hence, an approach to C-V-P where pertinent
factors necessary for decision making are considered as variables is more desirable than traditional C-V-P.
Carbary, J. (2021, February 23). Cost-Volume-Profit Analysis - Wyzant lessons. Wyzant Lessons.
https://www.wyzant.com/resources/lessons/accounting/cost-volume-profit/
By introducing uncertainty, it is also beneficial to broaden C-V-P to fulfill the following desire of management.
Should management choose a course of action based only on its own estimates of the decision parameters or is it
advisable to postpone a terminal decision until additional research into the decision parameters is accomplished?
Broadened C-V-P solves this problem with the aid of Bayesian Decision Theory for the choice of the optimal course
of action in the face of uncertainty.
Using CVP Analysis we can analyze a single product, a group of products, or evaluate the entire business as a
whole. The ability to work across the entire product line in this way gives us a powerful tool to analyze financial
information. It provides us with day-to-day techniques that are easy to understand and easy to use. The concepts
parallel the real world, so they are easy to visualize and use.
Kim, Seung. (2015). Cost-Volume-Profit Analysis for a Multi-Product Company: Micro Approach. International
Journal of Accounting and Financial Reporting. 5. 10.5296/ijafr.v5i1.6832.
https://www.researchgate.net/publication/276375718_Cost-Volume-Profit_Analysis_for_a_Multi-
Product_Company_Micro_Approach
Muthige, Mukhodeni & Beneke, JD & Robbetze, Natasha. (2022). THE APPLICATION OF COST VOLUME
PROFIT ANALYSIS IN THE SOUTH AFRICAN MINIBUS TAXI INDUSTRY.
https://www.researchgate.net/publication/367268957_THE_APPLICATION_OF_COST_VOLUME_PROFIT_AN
ALYSIS_IN_THE_SOUTH_AFRICAN_MINIBUS_TAXI_INDUSTRY
The rapid and strong flow of economic development and competition has compelled businesses in both the informal
and formal sectors to be competitive in every way. Furthermore, this rapid and strong flow has resulted in fierce
rivalry, even among minibus taxi owners. Cost volume profit analysis (CVP) has become an important management
accounting principle in this rapid and strong economic flow. This is because cost volume profit analysis is a
management accounting principle that may be used in planning, monitoring, and decision-making by forcing
minibus taxi owners to evaluate future possibilities, anticipate openings in terms of opportunities and restructuring,
and detect future risks. The purpose of this research paper is to investigate whether minibus taxi owners in the
informal sector apply CVP as a management accounting principle tool in operating their minibus taxi business.
Ihemeje, J. C., Okereafor, G., & Ogungbangb, B. M. (2015). Cost-volume-profit analysis and decision making in the
manufacturing industries of Nigeria. Journal of International Business Research and Marketing, 1(1), 7-15.
https://scholar.google.com/scholar?q=%2Bintitle%3A%22Cost-volume-
profit+Analysis+and+Decision+Making+in+the+Manufacturing+Industries+of+Nigeria%22
In this research study, the researcher has attempted to examine critically the effect of cost-volume-profit analysis on
the decision making process of manufacturing industries in Nigeria. We discover from the study that the
management of manufacturing industries in Nigeria have not adequately and successful applied the technique of
cost-volume-profit analysis in their industries and this has lead to this technique not having its full effect in the
decision making process of manufacturing industries. Deductive from the study finding is that some management
and staff of these manufacturing industries are ignorant of the concept of cost-volume-profit analysis and hence do
not apply it. This research study has also made findings that cost-volume-profit analysis is a commonly used tool
providing management with useful information for decision making and it will also be employed in making vital and
reasonable decision when a firm (especially manufacturing firm) faced with managerial problems which have cost,
volume and product implication.