The Cost-Volume-Profitability Analysis

Teodora Roupska (2012) this study examinesapplication of the cost-volume-profit analysis in the agricultural sector – problems and solutions, The “Cost-Volume-Profitability” (CVP) analysis is a well-known Management Accounting tool applicable in industrial companies. It can be applied successfully in agrarian companies, but it is necessary to identify fixed and variable costs (in Bulgaria it isn’t done), made for raising animals or growing plants, because the agrarian production is made from biological assets. The costs made for plants or animals are different. Besides the same cost in the individual companies are able to be classified differently depending on its particular manifestation. The “Cost Volume Profitability” analysis can easily

The impact on effectiveness and profitability of working capital is tried to find out by measuring the fluctuation in fixed assets, current assets and sales. For this last five years data from 2008 to 2012 of two major companies in public and private sector of steel industry i. e., Steel Authority of India and Tata Steel Ltd., is taken. It is also tried to find out correlation among working capital to find along with their liquidity, efficiency and profitability. We find that there is a significant negative relationship between liquidity and profitability. In this paper efforts are made to know is these ratios remained unchanged for any industry or varies from one industry to

Products must meet environmental standards to not only prevent penalties but to consider the sustainability for future generations. However, the most important factor that companies will face is selecting a reasonable strategy to maximize their profit. Thus, companies need to have precise forecast from their profit after design stage through Trade-off analysis. This paper is an attempt to introduce a mathematical model that considers effective factors that impact the total profit when products are designed for resource and energy efficiency or recyclability. The modification is according to different strategies based on a Cost-Volume-Profit model. Here, the cost structure consists of Recycling cost, Development cost, Ramp-up cost, Production cost, and Pollution cost. Also, the model shows the effect of implementation of design for recyclable on revenue structure through revenue of used parts and revenue of recycled materials. A numerical example is used to evaluate the proposed model. Results show that fulfillment of Green Product Development not only can reduce the environmental impact of products but also it will increase profit of company