Cost-volume-profit Analysis and Decision Making in the Manufacturing Industries of Nigeria

Abstract

This study determined the effect of cost-volume-profit analysis in the decision making of manufacturing industries. The study combined both survey research and longitudinal research design. Both primary and secondary data were used for collection. They were analyzed using regression and correlation techniques. The results revealed that the sales value of a product and the quantity of the product manufactured has a positive effect on profit made on the product, also that there is a significant relationship between the cost of production and profit. The reorder and economic order quantity was also determined as a base for assessing decision-making opportunities. Based on the result, the researcher recommends that manufacturing industries should always adopt cost-volume-profit analysis in their decision making.