ABSTRACTS
The utility of Cost-Volume-Profit analysis lies in the fact that it
presents a microscopic picture of the profit structure of a business
enterprise. It does not only highlight the area of economic strength
and weakness in the firm but also sharpens the focus on certain
leverage which can be operated upon to enhance its profitability. The
objective of this study is to find out the effectiveness and also factors
affecting the implementation of this Cost-Volume-Profit analysis in the
manufacturing Industry.
The researcher in the findings observed that
most Industries aim at profit maximization and paid little or no
attention to the effect of Cost-Volume-Profit analysis. It was also
discovered that the more the cost acquired for a particular production
without corresponding increase in the volume of production reduces
profit. Therefore, manufacturing Industries should ensure that when
cost increases the raw material should equally increase to
manufacture more products to cover the variable and fixed cost and
also retain a reasonable profit for the firm. Finally, in the office
operation budget should be made more detailed, religiously adhered
to and controlled more vigorously so as to reduce total operation cost
and maximize profit.
