Cost Volume Profitability Analysis - An Empirical Study With Reference To Salem Steel Authority of India Limited (SAIL),Tamilnadu
Journal Title: International Journal of Business and Management Invention - Year 2018, Vol 7, Issue 5
Abstract
Cost Volume Profitability analysis has become a powerful instrument in the hands of policy makers to maximize the profits in the present scenario. The relationship between cost, revenue and profit at different levels may be expressed in graphs such as break-even charts, profit volume graphs or in various statements forms. Profit depends on a large number of factors which are the cost of manufacturing, and the volume of sales. Therefore, the researcher has taken Salem Steel Authority of India Limited, Tamilnadu which is one among the steel industries in India to measure the profitability position through BEP analysis. In order to fulfill the objectives, the researcher has taken ten years financial data from the period of 2005-2006 to 2014- 2015 in the form of secondary data. From the results, a PV ratio from 2005-06 to 2014-15 are gradually increased and also breakeven point shows a satisfactory level with respect to all the level of sales volume in all ten years. Therefore, it is concluded that CVP analysis is used to escalate production capacity and utilize advanced technology to reduce cost of production and wage cost for the purpose hiking the profitability, volume, not only against the investment, but also from the investor’s return point of view.
Authors and Affiliations
Dr. R. Kavitha
Keywords
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