Economic Themes (2010) 48 (4) 5, 547-562
Vesna Janjić, Mirjana Todorović, Dejan Jovanović
Abstract: Cost-volume-profit analysis represents valuable tool and irreplaceable management instrument in realization of one of the main goals – profit maximization of the company. CVP analysis, and brake-even point analysis within it, with its clarity and simplicity and with its arithmetic and graphic (visual) methodology provides possibility of planning, control and company’s financial result accomplishment. Justified popularity permits us to emphasize once more its relevance and wide implementation in practice of the contemporary companies. In addition to previous, the article will explain the impact of cost structure on profit stability on the basis of the cost-volume-profit analysis.
Keywords: CVP analysis; break-even point; cash flow break-even point; costs; operating leverage
CVP ANALYSIS -THE IMPACT OF COST STRUCTURE ON THE RESULT OF THE COMPANY
Vesna Janjić, Mirjana Todorović, Dejan Jovanović
Abstract: Cost-volume-profit analysis represents valuable tool and irreplaceable management instrument in realization of one of the main goals – profit maximization of the company. CVP analysis, and brake-even point analysis within it, with its clarity and simplicity and with its arithmetic and graphic (visual) methodology provides possibility of planning, control and company’s financial result accomplishment. Justified popularity permits us to emphasize once more its relevance and wide implementation in practice of the contemporary companies. In addition to previous, the article will explain the impact of cost structure on profit stability on the basis of the cost-volume-profit analysis.
Keywords: CVP analysis; break-even point; cash flow break-even point; costs; operating leverage
