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EFFECTIVE APPLICATION
OF BREAKEVEN ANALYSIS IN MANAGEMENTS FIRMS
ABSTRACT
This research
work is an appraisal of the
“EFFECTIVE APPLICATION OF BREAKEVE
ANALYSIS IN MANUFACTURING FIRMS”
This work is
firmly directed towards, the need and usage of breakeven analysis by managers
and accountants in manufacturing firms. Breakeven analysis is a management tool that could be used in
making vital decisions when a firms is faced with problems having lost, volume
and profit implication However, breakeven analysis can be a valuable and reliable
decision making tool if it is exhaustively conducted and applied.
Based on the
findings, some recommendation on two to revert the situation towards effective
application were made which include:
ØThat seminar, symposia and workshops on application
breakeven analysis should be organized by bodies like the Institute of
Chartered Accountants of Nigeria (ICAN), Nigeria Institute of Social Economic
Researcher (NISER) Nigerian Institute of Management.
ØThat the Institute of Chartered Accountants of Nigeria
should start the publication of a new professional journals in Nigeria devoted
solely to the development of the theory and application of management
accounting principles and techniques.
Hence, we therefore conduce that if the above mentioned
recommendations are understood, accepted and implemented. Our manufacturing
firms will be able to make better cost-volume-profits decisions, which will
result is increased efficiency of the manufacting sector or industry.
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