ABSTRACT
Manufacturing firms in Nigeria do not
give due consideration to the three variables and assumptions of
cost-volume-Profit (CVP) analysis in the decision making process. This results
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 which is a typical manufacturing Firm in Nigeria.
Sixty (60) copies of questionnaires were administered to Aba branch of PZ
industries Plc. Primary data collected through questionnaire were presented and
analyzed using tables and percentages while chi-Square (X2) test was used for
the test of hypothesis formulated for the study. The population is 230 and
Taro-Yamane's formular was used to get the sample size as 146 which was
stratified to be 60. The research findings established the long held speculation? lack
of knowledge of CVP analysis by manufacturing firms and decision makers aide
inadequacy exhibited where it is applied. In furtherance of the research objectives, the research measures on how to revert the situation, increased
profitability and the reaping of the resultant benefits thereof The focus of
the recommendation is that each of the three variables of Cost-Volume-Profit
analysis (Cost, volume and Profit) should be considered since no meaningful
decision could be reached if any of the variables is isolated especially for a
manufacturing concern in the modern 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.
OSIH, N (2021). An Appraisal Of The Application Of Cost-Volume Profit Analysis And Its Effect On Profitability Of A Manufacturing Organization (A Case Study Of Pz Industries Plc Aba). Mouau.afribary.org: Retrieved Nov 02, 2024, from https://repository.mouau.edu.ng/work/view/an-appraisal-of-the-application-of-cost-volume-profit-analysis-and-its-effect-on-profitability-of-a-manufacturing-organization-a-case-study-of-pz-industries-plc-aba-7-2
NNENNA, OSIH. "An Appraisal Of The Application Of Cost-Volume Profit Analysis And Its Effect On Profitability Of A Manufacturing Organization (A Case Study Of Pz Industries Plc Aba)" Mouau.afribary.org. Mouau.afribary.org, 04 Aug. 2021, https://repository.mouau.edu.ng/work/view/an-appraisal-of-the-application-of-cost-volume-profit-analysis-and-its-effect-on-profitability-of-a-manufacturing-organization-a-case-study-of-pz-industries-plc-aba-7-2. Accessed 02 Nov. 2024.
NNENNA, OSIH. "An Appraisal Of The Application Of Cost-Volume Profit Analysis And Its Effect On Profitability Of A Manufacturing Organization (A Case Study Of Pz Industries Plc Aba)". Mouau.afribary.org, Mouau.afribary.org, 04 Aug. 2021. Web. 02 Nov. 2024. < https://repository.mouau.edu.ng/work/view/an-appraisal-of-the-application-of-cost-volume-profit-analysis-and-its-effect-on-profitability-of-a-manufacturing-organization-a-case-study-of-pz-industries-plc-aba-7-2 >.
NNENNA, OSIH. "An Appraisal Of The Application Of Cost-Volume Profit Analysis And Its Effect On Profitability Of A Manufacturing Organization (A Case Study Of Pz Industries Plc Aba)" Mouau.afribary.org (2021). Accessed 02 Nov. 2024. https://repository.mouau.edu.ng/work/view/an-appraisal-of-the-application-of-cost-volume-profit-analysis-and-its-effect-on-profitability-of-a-manufacturing-organization-a-case-study-of-pz-industries-plc-aba-7-2