{"id":23099,"date":"2025-10-30T09:53:30","date_gmt":"2025-10-30T09:53:30","guid":{"rendered":"https:\/\/journals.amssr.org\/grjaf\/?p=23099"},"modified":"2025-10-30T09:53:41","modified_gmt":"2025-10-30T09:53:41","slug":"comparative-study-on-the-application-of-cost-volume-profit-analysis-in-management-decision-of-manufacturing-organizations","status":"publish","type":"post","link":"https:\/\/journals.amssr.org\/grjaf\/2025\/10\/30\/comparative-study-on-the-application-of-cost-volume-profit-analysis-in-management-decision-of-manufacturing-organizations\/","title":{"rendered":"COMPARATIVE STUDY ON THE APPLICATION OF COST VOLUME PROFIT ANALYSIS IN MANAGEMENT DECISION OF MANUFACTURING ORGANIZATIONS"},"content":{"rendered":"\n<h2 class=\"wp-block-heading\">Download PDF<\/h2>\n\n\n\n<div data-wp-interactive=\"core\/file\" class=\"wp-block-file\"><object data-wp-bind--hidden=\"!state.hasPdfPreview\" hidden class=\"wp-block-file__embed\" data=\"https:\/\/journals.amssr.org\/grjaf\/wp-content\/uploads\/sites\/2\/2025\/10\/p_COMPARATIVE-STUDY-ON-THE-APPLICATION-OF-COST-VOLUME-PROFIT-ANALYSIS-IN-MANAGEMENT-DECISION-OF-MANUFACTURING-ORGANIZATIONS-GRJAF-AMSSRN.docx.pdf\" type=\"application\/pdf\" style=\"width:100%;height:600px\" aria-label=\"Embed of p_COMPARATIVE STUDY ON THE APPLICATION OF COST VOLUME PROFIT ANALYSIS IN MANAGEMENT DECISION OF MANUFACTURING ORGANIZATIONS GRJAF AMSSRN.docx.\"><\/object><a id=\"wp-block-file--media-2f9302f7-95a7-43c1-b80e-36e51acaaeb4\" href=\"https:\/\/journals.amssr.org\/grjaf\/wp-content\/uploads\/sites\/2\/2025\/10\/p_COMPARATIVE-STUDY-ON-THE-APPLICATION-OF-COST-VOLUME-PROFIT-ANALYSIS-IN-MANAGEMENT-DECISION-OF-MANUFACTURING-ORGANIZATIONS-GRJAF-AMSSRN.docx.pdf\">p_COMPARATIVE STUDY ON THE APPLICATION OF COST VOLUME PROFIT ANALYSIS IN MANAGEMENT DECISION OF MANUFACTURING ORGANIZATIONS GRJAF AMSSRN.docx<\/a><a href=\"https:\/\/journals.amssr.org\/grjaf\/wp-content\/uploads\/sites\/2\/2025\/10\/p_COMPARATIVE-STUDY-ON-THE-APPLICATION-OF-COST-VOLUME-PROFIT-ANALYSIS-IN-MANAGEMENT-DECISION-OF-MANUFACTURING-ORGANIZATIONS-GRJAF-AMSSRN.docx.pdf\" class=\"wp-block-file__button wp-element-button\" download aria-describedby=\"wp-block-file--media-2f9302f7-95a7-43c1-b80e-36e51acaaeb4\">Download<\/a><\/div>\n\n\n\n<h2 class=\"wp-block-heading\">Authors<\/h2>\n\n\n\n<p>Onuoha Perpetua Ijeoma (Ph.D) <sup>1<\/sup>; Ugama Ijeoma Nnenna <sup>2<\/sup><\/p>\n\n\n\n<p><em><sup>1 <\/sup><\/em><em>Faculty of Management Sciences<\/em><\/p>\n\n\n\n<p><em>&nbsp;Alex &#8211; Ekwueme Federal University Ndufu -Alike, Nigeria.<\/em><\/p>\n\n\n\n<p><em><sup>2 <\/sup><\/em><em>Department of Accountancy<\/em><\/p>\n\n\n\n<p><em>Ebonyi State University Abakaliki, Nigeria.<\/em>&nbsp;<\/p>\n\n\n\n<p><a href=\"about:blank\"><em><sup>1 <\/sup><\/em><em>onuohaijeomaperpetua@gmail.com<\/em><\/a><em>, <\/em><em><sup>&nbsp;<\/sup><\/em><em>07033548086,<\/em><\/p>\n\n\n\n<p><a href=\"about:blank\"><em><sup>2 <\/sup><\/em><em>ijeomaugama@gmail.com<\/em><\/a><em>, 08136322277<\/em><\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Abstract<\/strong><\/h2>\n\n\n\n<p><strong>Research Objectives: <\/strong>The study examines the comparative application of Cost\u2013Volume\u2013Profit (CVP) analysis in decision-making among Nigerian manufacturing organizations, focusing on pricing, product mix, production planning, and profit planning. It aims to assess the extent of adoption, identify challenges, and provide improvement strategies. &nbsp;<\/p>\n\n\n\n<p><strong>Methodology:<\/strong> A qualitative research design was adopted, relying strictly on secondary data drawn from academic literature, industry reports, and documented case studies. Comparative analysis was conducted between large and medium-scale firms.<\/p>\n\n\n\n<p><strong>Findings:<\/strong> Results indicate that 72% of large-scale firms apply CVP analysis regularly, compared to 41% of medium-scale firms. Break-even analysis (68%) and pricing decisions (61%) are most commonly used, while profit planning (29%) and product mix (34%) are underutilized. Major barriers include unreliable data (54%), weak analytical skills (47%), technological gaps (39%), and managerial reluctance (33%).<\/p>\n\n\n\n<p><strong>Conclusion: <\/strong>Large firms demonstrate stronger integration of CVP due to superior managerial resources and technology, whereas medium firms show fragmented use. This disparity reduces the overall effectiveness of CVP in driving profitability across the sector.<\/p>\n\n\n\n<p><strong>Recommendation:<\/strong> Improving data quality, embedding CVP into management information systems, providing analytical training, and fostering cross-functional adoption are critical to maximizing the benefits of CVP analysis for Nigerian manufacturing organizations<\/p>\n\n\n\n<p><strong>Keywords:<\/strong> Cost, Price, Volumes and Profit analysis, manufacturing firms, profit planning.<\/p>\n\n\n\n<p><strong>&nbsp;References<\/strong><\/p>\n\n\n\n<p>IIARD. (2025). Cost volume profit (CVP) analysis: Application. <em>Journal of Public Administration and Social Welfare Research, 10<\/em>(3), 103\u2013110.&nbsp; <a href=\"https:\/\/www.iiardjournals.org\/get\/JPASWR\/VOL.%2010%20NO.%203%202025\/COST%20VOLUME%20PROFIT%20%28CVP%20103-110.pdf\" target=\"_blank\" rel=\"noopener\">https:\/\/www.iiardjournals.org\/get\/JPASWR\/VOL.%2010%20NO.%203%202025\/COST%20VOLUME%20PROFIT%20%28CVP%20103-110.pdf<\/a><\/p>\n\n\n\n<p>Luka Ruth Salamati (2022). Cost-volume-profit relationships and the concept of sales mix in pharmaceutical companies in Indonesia. <em>PNR Journal<\/em> (PDF).&nbsp; <a href=\"https:\/\/www.pnrjournal.com\/index.php\/home\/article\/download\/4490\/4906\/5527\" target=\"_blank\" rel=\"noopener\">https:\/\/www.pnrjournal.com\/index.php\/home\/article\/download\/4490\/4906\/5527<\/a><\/p>\n\n\n\n<p>Ming, C. (2022). Discussion on cost-volume-profit analysis. <em>Proceedings of the International Conference on Management<\/em>, 111\u2013724.&nbsp; <a href=\"https:\/\/www.scitepress.org\/Papers\/2022\/111724\/111724.pdf\" target=\"_blank\" rel=\"noopener\">https:\/\/www.scitepress.org\/Papers\/2022\/111724\/111724.pdf<\/a><\/p>\n\n\n\n<p>Nuhu Magaji Kiyam (2020) International Journal of Business and Quality Research. (2020). The influence of cost-volume-profit analysis on profit planning at private high schools in Mataram City. <em>International Journal of Business and Quality Research<\/em> (August 2020 issue).&nbsp; <a href=\"https:\/\/e-journal.citakonsultindo.or.id\/index.php\/IJBQR\/article\/download\/772\/635\" target=\"_blank\" rel=\"noopener\">https:\/\/e-journal.citakonsultindo.or.id\/index.php\/IJBQR\/article\/download\/772\/635<\/a><\/p>\n\n\n\n<p>Nworie, G. O., &amp; Oguejiofor, B. C. (2023). <em>Management Information System and Performance of Cement Firms in Southeast Nigeria.<\/em> <em>International Journal of Accounting and Management Information Systems, 1<\/em>(1), 1\u201315.&nbsp; <a href=\"https:\/\/cajitmf.centralasianstudies.org\/index.php\/CAJITMF\/article\/view\/429\" target=\"_blank\" rel=\"noopener\">https:\/\/cajitmf.centralasianstudies.org\/index.php\/CAJITMF\/article\/view\/429<\/a><\/p>\n\n\n\n<p>Nworie, G. O., Okafor, T. G., Igwebuike, C. C., &amp; Onyali, C. I. (2023). Utilizing cost-volume-profit analysis for informed decision making in small business management. <em>Central Asian Studies (International Journal)<\/em>.&nbsp; <a href=\"https:\/\/www.researchgate.net\/publication\/368503038_Utilizing_Cost-Volume-Profit_Analysis_for_Informed_Decision_Making_in_Small_Business_Management\" target=\"_blank\" rel=\"noopener\">https:\/\/www.researchgate.net\/publication\/368503038_Utilizing_Cost-Volume-Profit_Analysis_for_Informed_Decision_Making_in_Small_Business_Management<\/a>&nbsp;<\/p>\n\n\n\n<p>Okpala, K. E., &amp; Osanebi, C. (2020). <em>Cost Volume Profit Analysis and Profit Planning in Manufacturing SMEs in Nigeria.<\/em> <em>Asia-Pacific Management Accounting Journal, 15<\/em>(2), 208\u2013240.&nbsp; <a href=\"https:\/\/www.researchgate.net\/publication\/344804831_COST_VOLUME_PROFIT_ANALYSIS_AND_PROFIT_PLANNING_IN_MANUFACTURING_SMES_IN_NIGERIA\" target=\"_blank\" rel=\"noopener\">https:\/\/www.researchgate.net\/publication\/344804831_COST_VOLUME_PROFIT_ANALYSIS_AND_PROFIT_PLANNING_IN_MANUFACTURING_SMES_IN_NIGERIA<\/a>&nbsp;<\/p>\n\n\n\n<p>Ozuluonye, N. W. (2022). <em>Effects of the Application of Cost\u2013Volume\u2013Profit Analysis on Profitability of Manufacturing Organizations (A Study of Selected Industries in Aba, Abia State).<\/em>&nbsp; <a href=\"https:\/\/repository.mouau.edu.ng\/work\/view\/effects-of-the-application-of-cost-volume-profit-analysis-on-profitability-of-manufacturing-organizations-a-study-of-selected-industries-in-aba-abia-state-7-2\" target=\"_blank\" rel=\"noopener\">https:\/\/repository.mouau.edu.ng\/work\/view\/effects-of-the-application-of-cost-volume-profit-analysis-on-profitability-of-manufacturing-organizations-a-study-of-selected-industries-in-aba-abia-state-7-2<\/a><\/p>\n\n\n\n<p>Sajedeh, B., Abekah, J., &amp; Rahim, A. (2020). <em>Integration of Cost Volume Profit Analysis Under Uncertainty in Profit Planning: A Current Application.<\/em> <em>Strategies in Accounting and Management, 2<\/em>(2), 1\u20137.&nbsp; <a href=\"https:\/\/cajitmf.centralasianstudies.org\/index.php\/CAJITMF\/article\/view\/429\" target=\"_blank\" rel=\"noopener\">https:\/\/cajitmf.centralasianstudies.org\/index.php\/CAJITMF\/article\/view\/429<\/a><\/p>\n\n\n\n<p>Uchegbu, C. U., Okoye, C. B., &amp; Umenzekwe, P. C. (2025). Cost volume profit analysis as a management tool for decision making in SMEs in Anambra State. <em>African Journal of Business and Economic Development, 5<\/em>(3), 49\u201363.&nbsp; <a href=\"https:\/\/www.researchgate.net\/publication\/392073461_Cost_Volume_Profit_Analysis_as_a_Management_Tool_for_Decision_Making_in_SMEs_in_Anambra_State\" target=\"_blank\" rel=\"noopener\">https:\/\/www.researchgate.net\/publication\/392073461_Cost_Volume_Profit_Analysis_as_a_Management_Tool_for_Decision_Making_in_SMEs_in_Anambra_State<\/a>&nbsp;<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Download PDF Authors Onuoha Perpetua Ijeoma (Ph.D) 1; Ugama Ijeoma Nnenna 2 1 Faculty of Management Sciences &nbsp;Alex &#8211; Ekwueme Federal University Ndufu -Alike, Nigeria. 2 Department of Accountancy Ebonyi State University Abakaliki, Nigeria.&nbsp; 1 onuohaijeomaperpetua@gmail.com, &nbsp;07033548086, 2 ijeomaugama@gmail.com, 08136322277 Abstract Research Objectives: The study examines the comparative application of Cost\u2013Volume\u2013Profit (CVP) analysis in decision-making among Nigerian manufacturing organizations, focusing on pricing, product mix, production planning, and profit planning. It aims to assess the extent of adoption, identify challenges, and [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":21742,"comment_status":"open","ping_status":"0","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[335,618,571],"tags":[],"class_list":["post-23099","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-grjaf","category-vol-5-issue-2","category-volume-5"],"_links":{"self":[{"href":"https:\/\/journals.amssr.org\/grjaf\/wp-json\/wp\/v2\/posts\/23099","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/journals.amssr.org\/grjaf\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/journals.amssr.org\/grjaf\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/journals.amssr.org\/grjaf\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/journals.amssr.org\/grjaf\/wp-json\/wp\/v2\/comments?post=23099"}],"version-history":[{"count":1,"href":"https:\/\/journals.amssr.org\/grjaf\/wp-json\/wp\/v2\/posts\/23099\/revisions"}],"predecessor-version":[{"id":23101,"href":"https:\/\/journals.amssr.org\/grjaf\/wp-json\/wp\/v2\/posts\/23099\/revisions\/23101"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/journals.amssr.org\/grjaf\/wp-json\/wp\/v2\/media\/21742"}],"wp:attachment":[{"href":"https:\/\/journals.amssr.org\/grjaf\/wp-json\/wp\/v2\/media?parent=23099"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/journals.amssr.org\/grjaf\/wp-json\/wp\/v2\/categories?post=23099"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/journals.amssr.org\/grjaf\/wp-json\/wp\/v2\/tags?post=23099"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}