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)

OSIH BLESSING NNENNA | 65 pages (11315 words) | Projects

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.

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APA

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 27, 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

MLA 8th

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 27 Nov. 2024.

MLA7

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. 27 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 >.

Chicago

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 27 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

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