Cost Volume Profit Research Articles

Cost Volume Profit Analysis as a Profit Planning Tool at Buket Husnul

UMKM Buket Husnul is a business in the creative industry that sells products in the form of flower bouquets with various models. In its profit planning Buket Husnul does not yet have a planning tool, therefore this study discusses related to profit planning at UMKM Buket Husnul which utilizes Cost-Volume-Profit analysis as a tool to plan its profits. Cost-Volume-Profit analysis is a very good profit planning tool to help business people make decisions in order to optimize their business profits. In this study, researchers used a type of research with descriptive qualitative methods, based on data sources from interviews and direct observation in the field. The research results of the cost volume profit analysis that have been carried out are for the contribution margin of Rp43,125,000.00 with a contribution ratio of 52%. In order to reach the break-even point or Break-Event- Point the business owner must be able to sell a bouquet of 1,100 units with an income of Rp. 8,269,231.00 per quarter so that the business does not get a loss, with the maximum Margin of Safety that can only decrease by Rp. 74,230,769.00 with a ratio of 89.98% and the results of Operating-Leverage of 1.12 times operating profit.

Cost Volume Profit Analysis in Procurement of New Machinery as a Basis for Margin Contribution at PT. X in Jakarta

Cost Volume Profit Analysis in Procurement of New Machinery as a Basis for Margin Contribution at PT. X in Jakarta

Zomato’s Quest for Survival

The case of ‘Zomato’s Quest for Survival’ focuses on the concept of value relevance of accounting information. The case deals with financial ratio analysis, comparative financial statement analysis, cost–volume–profit analysis and DuPont analysis. The case also deals with the effect of acquisition on the acquiring firm’s fundamentals, post-acquisition. The case explores the potential growth of India’s food delivery market and goes on to explore Zomato’s business strategy and source of income. The case starts with Mr. Arghadip considering purchasing Zomato Ltd. Shares. He, therefore, gathered information from various sources to assess the company’s fundamentals and prospects for the future. A lot of questions worth discussing were brought up by the case. The ideal students for the case would be students of B.Com, M.Com, BBA and MBA. The case can also be discussed in Chartered Accountant and Cost and Management Accountant courses.

Analisis Cost Volume Profit Sebagai Dasar Perencanaan Laba Yang Diharapkan

Cost Volume Profit Analysis as a Basis for Expected Profit Planning (Case Study of Privately Owned Business "Ifamoy Home Industri"). Under the guidance of A company needs profit planning to help management determine the level of profit it wants to obtain, with Cost Volume Profit analysis which focuses on various factors that influence changes in profit components at the Ifamoy Home Industry company. This research aims to determine the application of Cost Volume Profit Analysis in the Ifamoy Home Industry. This research uses descriptive research. The data collection technique used is the Observation and Documentation Technique on existing income data at Ifamoy Home Industry. The results of this research show that the Total Calculation Profit is IDR. 828,000,0000.00, with a total Contribution Margin of IDR. 1,670,000,000 with a ratio of 0.8%, with a Total Break Even Point of Rp. 512,000,000, with a total margin of safety of Rp. 1,568,000,000, with a ratio of 75%, with profit planning to increase by (20%) in 2023 resulting in a profit of Rp. 2,508,200,000.

ФОРМИРОВАНИЕ УСТОЙЧИВОСТИ РАЗВИТИЯ ПРЕДПРИЯТИЯ ПРИ УПРАВЛЕНИИ В ТЕКУЩЕМ ПЕРИОДЕ СОВОКУПНОСТЬЮ МНОГОПРОДУКТОВЫХ ИННОВАЦИОННЫХ ПРОИЗВОДСТВ

Analyzing the sustainable development of innovative industries with the diversification of production for risky projects, this paper studies the possibilities and disadvantages of the traditional applica-tion of cost – volume – profit (CVP) analysis for assessing the implementation of multi-product production projects. The hypothesis is that the sustainable development of enterprises with multi-product production on the basis of the “corrective factors of formation” management model of the overall break-even point of the planned profit of the production with various characteristic initiating perturbations can be ensured by devel-oping a matrix of potential solutions “one initiating factor to one corrective management factor”. The model can to take into account deviations of constant and variable factors in the formation of the final planned prof-it for multi-product production, including the difference of clock productivity and planned periods for the production of individual products and changes in factors. The methodical approach is illustrated by examples of analytical calculations and generalized graphical representations of changes in the variable and fixed costs of one product at the expense of a possible change in variable costs of another product, and by adjusting the fixed costs at the expense of a possible change in the fixed costs of another product. The approach is largely universal under other boundary conditions for the pairs of initiating-correcting influence to assess the sus-tainability of the development of mono- and multi-product production.

Management Accounting Practices and Internet Financial Reporting of Listed Manufacturing Companies in Nigeria.

The study explores the effect of management accounting practices on internet financial reporting of listed manufacturing companies on the Nigeria stock exchange (NSE). It employed the descriptive research design using panel data set from the financial reports for a 10 years period between 2010 to 2019, of the sampled companies. The population of the study is the whole listed manufacturing companies that have website address which cut across health manufacturing, consumer goods manufacturing, industrial goods manufacturing and conglomerates companies, numbering 65 companies, the sample size for this study is 42 companies that have active website address, and is derived using the purposive sampling technique. The trusted search engines used to source for data for this study includes; www.google.com, www.proshare.com, africanfinancials.com, to establish the real website of the sample companies. The multiple linear regression method and the ordinary least squares models were used to analyze data collected. The study adopted the Internet Disclosure Index as proxy for dependent variable, while the independent variables were cost of resources supplied, economic value added and modified cost volume profit. The result of the study showed that a positive significant relationship exists between cost of resources supplied and internet financial reporting disclosures, that economic value addition showed a negative significant relationship with internet financial reporting disclosures, a positive insignificant relationship exists between modified cost volume profit and internet financial reporting disclosures each in the sampled companies. It is therefore, recommended based on these findings that Companies in this sector should endeavor to manage their cost of owning a website so as to maintain the benefit of internet financial reporting, the value additions in respect to using internet financial reporting must be adequately analyzed so that the purpose of using it will not be defeated, and that a well-planned cost-volume-profit analysis be carried out to ensure that the huge bill involved with financial reporting is defrayed within the companies’ margin of safety.

Cost Volume Profit (CVP) Analysis in Determining the Number of Units to Achieve Profit Targets (Case Study on Byta Hijab)

This research aims to determine the profit target achieved using Cost Volume Profit (CVP) at Byta Hijab. This research uses a case study approach and research data was obtained through interviews with the owner of Byta Hijab. This research used qualitative descriptive research with a case study approach. The data collection techniques in this research are observation by visiting for 1 day, interviews with business owners and documentation by searching for data in the form of financial data and photographs as a complement to primary data. The data analysis technique used is Cost Volume Profit (CVP) analysis by determining the number of units that must be sold to achieve the business profit target. The research results show that the CVP method produces more accurate profit target calculations than traditional methods

Cost Volume Profit Analysis as a Basis for Profit Planning on Banana Nugget Raffi

Tujuan penelitian ini adalah untuk mengetahui analisis perhitungan Cost Volume Profit (CVP) sebagai dasar perencanaan laba pada Banana Nugget Raffi. Metode penelitian yang digunakan untuk menganalisis adalah metode kombinasi (Mix Method) yaitu metode yang menggunakan pendekatan kuantitatif dan kualitatif. Metode pengumpulan data yang dikombinasikan adalah wawancara, observasi, dan dokumentasi. Penentuan sampel menggunakan teknik purposive sampling. Sampel yang ditentukan pada data kuantitatif adalah data penjualan Banana Nugget Raffi di Cawang tahun 2021 dan 2022, sedangkan sampel yang ditentukan pada data kualitatif adalah pemilik dan karyawan Banana Nugget Raffi di Cawang. Berdasarkan perhitungan Cost Volume Profit (CVP) Banana Nugget Raffi pada tahun 2021 memiliki nilai rasio margin kontribusi sebesar 45%, nilai titik impas sebesar Rp 137.004.444, nilai margin pengaman sebesar Rp 116.503.016 atau 42%, dan nilai leverage operasi sebesar 2,3. Pada tahun 2022 Banana Nugget Raffi mempunyai margin kontribusi sebesar 43%, nilai titik impas sebesar Rp 146.167.444, nilai margin pengaman sebesar Rp 101.087.968 atau 44%, dan nilai leverage operasi sebesar 2,2. Pada tahun 2023 Banana Nugget Raffi menginginkan kenaikan laba sebesar 20% dari tahun sebelumnya. Berdasarkan perhitungan, laba yang harus dicapai pada tahun 2023 sebesar Rp 61.560.550. Hal tersebut berarti Banana Nugget Raffi harus mencapai target penjualan pada tahun 2023 sebesar Rp 289.331.511 agar mendapatkan laba yang diharapkan.

Cost volume profit analysis for full paying patient services in Malaysia: A study protocol.

Dual practice within public hospitals, characterised by the concurrent provision of public and private healthcare services within public hospitals, has become a widespread phenomenon. With the participation of selected public hospitals, dual practice within public hospitals, also known as Full Paying Patient services, was an initiative the Ministry of Health Malaysia took in 2007 to retain senior specialist physicians in Malaysia. The revenue generated from the Full Paying Patient services aims to provide an avenue for public sector specialists to supplement their incomes while alleviating the Government's burden of subsidising healthcare for financially capable individuals. However, the effectiveness of Full Paying Patient services in recouping service delivery costs and yielding a profit is still uncertain after 16 years of implementation. This study is designed to evaluate the impact of Full Paying Patient inpatient services volume, revenue, and cost on profit versus loss at selected hospitals from 2017 to 2020. From the perspective of healthcare providers, we plan to perform a cost volume profit analysis. This analysis enables us to determine the break-even point, at which total revenues match total costs, along with no-loss and no-profit thresholds for Full Paying Patient services. This study has the potential to provide insights into how variations in service volume, cost, and pricing impact healthcare providers' profitability. It also offers critical financial information regarding the volume of services required to reach the break-even point. A comprehensive understanding of service volume, cost and pricing is imperative for making informed decisions to fulfil the objectives and ensure the sustainability of the FPP services.

ANALISIS CVP (COST VOLUME PROFIT) UNTUK PERENCANAAN LABA PADA CV. ZAM-ZAM COLLECTION KABUPATEN JOMBANG

This study aims to determine the calculation of profit planning on CV. Zam-Zam Collection as a whole uses cost-volume-profit analysis (CVP) with reference to the last year, that’s on 2022. The research method with primary data sources and secondary data. From the results of reseacrh in 2022 CV. Zam=Zam managed to sell 10.211 headscarves, earning Rp. 304.447.000. While the variable cost incurred are Rp. 233.780.490. and a fixed fee of Rp. 17.961.250. From the results of these calculations, the contribution margin result is Rp. 70.666.510 and the contribution margin ratio is 23%. The break even point result is IDR 78.092.781 and the BEP unit is 1.150 pcs. Result Margin of Safety of Rp. 226.354.609 with a percentage ratio of 74.35% the operating laverage is 1,34. Based on the calculation results of the cost-volume-profit (CVP) analysis, it shows that CV. Zam-Zam Collection has not yet carried out profit planning, but judging from the profit target with the reality of the profit generated, CV. Zam-Zam Collection has been able to achieve it.

Retracted: Enterprise Management Decision and Financial Management Based on Dynamic Cost Volume Profit Model

Retracted: Enterprise Management Decision and Financial Management Based on Dynamic Cost Volume Profit Model

“Profplan”: Konsep Aplikasi Perencanaan Laba Metode Cost-Volume-Profit (CVP) Sebagai Peningkatan Profitability UMKM Di Indonesia

This research aims to develop a conceptual design for a profit planning application using Cost Volume Profit (CVP) analysis for Micro, Small, and Medium Enterprises (MSMEs). MSMEs play a crucial role in Indonesia's economic growth, but they still face funding issues and a lack of guidance in financial planning and management. Therefore, optimizing profit generation becomes essential in strengthening the contribution of MSMEs to the economy. Cost Volume Profit (CVP) analysis is chosen as an effective profit planning method as it connects production costs, production volume, and profit. In this study, the author proposes the design concept of an application called "Profplan" specifically tailored to assist MSMEs in maximizing business profitability. This application will provide educational features such as short videos explaining fundamental accounting concepts related to manufacturing MSMEs. Furthermore, the application includes cost calculation and pricing determination features. The cost calculation feature helps users identify fixed and variable costs associated with production. Users can fill in a digital form with the costs incurred for production and obtain accurate production cost reports. The pricing determination feature utilizes the cost-plus pricing method with a full costing approach. Users can input their desired profit margin, and the application will recommend a selling price based on the production costs and the specified profit margin. The development of this application involves the collaboration of programmers and application developers. The steps include system design, application programming, usability testing, and patent registration before its official launch on the PlayStore and AppStore. With the "Profplan" application, MSMEs are expected to engage in profit planning more easily and effectively. This user-friendly approach will assist MSMEs in improving business profitability and contributing to Indonesia's economy.

Cost Analysis of NIO Inc.

Founded in 2014, NIO is a Chinese smart electric vehicle company, sometimes called Chinese Tesla. In the face of the scarcity of research on NIO, this paper analyzes and evaluates NIO's business management decisions following the six steps: Step 1 explores NIO's value chain; step 2 discusses costing methods suitable for NIO; step 3 classifies NIO's costs into variable, fixed, or mixed costs; step 4 conducts cost volume profit analysis for ES8; step 5 analyzes the impacts of NIO's sustainable practices on its budgeting; step 6 discusses KPIs NIO might use to evaluate its business performance. Materials used in this paper include NIO's 2021 annual report, NIO's websites, and other secondary sources, such as online articles.

Cost Analysis of NIO Inc.

Founded in 2014, NIO is a Chinese smart electric vehicle company, sometimes called Chinese Tesla. In the face of the scarcity of research on NIO, this paper analyzes and evaluates NIO's business management decisions following the six steps: Step 1 explores NIO's value chain; step 2 discusses costing methods suitable for NIO; step 3 classifies NIO's costs into variable, fixed, or mixed costs; step 4 conducts cost volume profit analysis for ES8; step 5 analyzes the impacts of NIO's sustainable practices on its budgeting; step 6 discusses KPIs NIO might use to evaluate its business performance. Materials used in this paper include NIO's 2021 annual report, NIO's websites, and other secondary sources, such as online articles.

Analisis Cost Volume Profit (CVP) Sebagai Alat Perencanaan Laba pada UMKM Ayam Broiler Ibu Ramlah

A successful business venture requires careful planning in terms of sales and expenses in order to generate profit. To achieve optimal profits, entrepreneurs must use Cost Volume Profit (CVP) analysis. Mrs. Ramlah's broiler chicken business has never conducted CVP analysis, resulting in less than maximum profits. This research aims to examine CVP analysis in Mrs. Ramlah's broiler chicken business. The method used is qualitative descriptive with a case study approach. The researcher obtains data through direct interviews with Mrs. Ramlah and then conducts data analysis. CVP analysis is conducted using Break-Even Point, Contribution Margin, Margin of Safety, and Degree of Operating Leverage. The research results of 2022 show that the BEP (units) must sell 2,700 and the BEP (rupiah) must earn 161,192,307 to avoid losses. The Contribution Margin ratio is 13%, the Margin of Safety in rupiah can drop up to 933,807,693 and Degree of Operating Leverage shows that Contribution Margin is 1.17 times the operating profit.

ANALISIS COST VOLUME PROFIT DALAM UPAYA MERENCANAKAN LABA USAHA KOPI MACRO COFFEE ROASTERY

The purpose of this study was to determine the application of CVP analysis as a means of planning the expected profit in the future. The method used is a descriptive method with a case study approach. This study uses data in the form of financial information consisting of income and expenses, both fixed costs and variable costs. The results of the analysis carried out showed that the contribution margin for 2020 was IDR193,898,400 with a ratio of 69%. The break-even point for 2020 is IDR 37,147,900. The sales level of IDR281,473,400 was above the break-even point, so the sales made were said to be able to generate maximum profit. The safety limit for 2020 is 80%. The level of company security is quite high, it is said to be good because the possibility of loss is low. The minimum allowable sales amount (margin of safety) in 2020 is IDR 227,635,800. The amount of profit expected for 2020 is IDR 192,803,100, therefore the company must be able to achieve the sales target of IDR 333,262,300. CVP analysis can be useful for company management to assist in planning expected profits in the future.
 Keywords: Cost Volume Profit; Break Event Point; Contribution Margin; Margin of Safety

Linear Algebra and Calculation of the Margin Rate of Product Safety

Based on the existing scholars' theoretical researches on the traditional cost-volume-profit analysis and theory of activity-based costing, this paper introduces the activity-based cost-volume-profit analysis into the actual cases, redivides the cost of M Company on the basis of theory of activity-based costing, and analyzes the break-even point and sensitivity coefficient of the redivided cost. Moreover, the results of the traditional cost-volume-profit analysis are compared with the results of the activity-based cost-volume-profit analysis, in aid of helping M Company find the most critical points that really affect the profit of the enterprise and find the profitability of each product. Furthermore, combined with the actual situation of M Company, this paper puts forward the corresponding cost control countermeasures, and draws the conclusion that the work-based cost-volume profit analysis is more suitable for the current production of the enterprise, which also provides certain reference value for other similar furniture manufacturing enterprises.

A sphere packing approach to break even and profitability analysis

The relationship between a company's cost, volume, and profit is important for strategic planning and widely used in business analysis and industrial management. Traditional Cost-Volume-Profit (CVP) analysis is used when a company is trying to determine what single level of sales, prices, and costs is necessary to reach a specific amount of profit. So far, a little attention has been paid to the extension of existing models of CVP analysis to illustrate a set of break even points, profitable sales, prices, and costs. For this purpose, for the first time, we propose a new approach to break even and profitability analysis called sphere packing based on a notion of set of profitability conditions with respect to CVP parameters. This approach uses sphere packing theory [9,10], linear programming and allows industries to handle break even and profitability analysis for multi-product case finding a set of required sales, prices, and costs to ensure profitability of a company. The sphere packing approach also provides practical suggestions and recommendations for managers to choose a set of optimal CVP parameters. The proposed approach is illustrated on some examples providing numerical results.

Accounting Costing : Cost Volume Profit Analysis in Company Sales

Accounting Costing : Cost Volume Profit Analysis in Company Sales

Implementation of Business Profit Planning Cost of Production and Cost Volume Profit Analysis in Small and Medium Enterprises at ABC Bakery

Implementing family cooperative-based Small and Medium Enterprises (SMEs) activities in Indonesia is one of the priorities in sustainable national economic development. ABC Bakery SMEs also carries out this activity, which produces donut products. The implementation of operating profit planning in cost of production, which was applied during field research, aims to make ABC Bakery SMEs financial planning able to generate healthy profits without excessive worries about the condition of wheat stocks and the demand for sales of donuts in the market which has decreased and resulted in losses. The study’s results obtained the calculation of the Cost of Production (HPP), resulting in a unit price of IDR 2,018. In the second stage, the researcher carried out BEP calculations with the results of the number of donuts that had to be sold, namely 18 units of chocolate sprinkle donuts and nine units of cheese donuts. The BEP calculation is then followed by an analysis of the calculation of profit so that it can cover production costs, so the profit target that must be obtained is IDR 100,000 per day, with ABC Bakery SMEs having to sell 41 units of chocolate sprinkle donuts and 20 units of cheese donuts.