A COMPARATIVE STUDY ON THE APPLICATION OF COST VOLUME PROFIT ANALYSIS IN MANAGEMENT DECISIONS OF MANUFACTURING ORGANIZATIONS

ABSTRACT The study examined the Application of Cost Volume Profit Analysis in Management Decisions of Manufacturing Organization. Adopting a comparative survey design, primary source of data using questionnaire as instrument of data collection, sample size of 255 derived from population size of 700 using Taro Yamane formula and a regression method of data analysis; the findings of the study showed that cost volume profit analysis is essential in managerial decision of an organization. Findings also showed that unit variable cost, marginal cost, unit per sale and total revenue affect manufacturing organization and for such manufacturing firms applies the knowledge of cost volume profit analysis in their managerial decision. Therefore, the study recommends that Manufacturing organizations should effectively analysis the cost volume profit before embarking on any managerial decision. Managers of manufacturing organization should always implement results obtained from their cost volumes analysis in order to ensure that the firm do not lose in their level of profit making and manufacturing organizations in their cost volume analysis should make sure that all their chains of production is effectively analysed to ascertain where improvement is needed when embarking on managerial decision.