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Cost–Volume–Profit (C–V–P) analysis is the analysis of the cost evolution models, which points out the relations between cost, production volume and profit. Cost-Volume-Profit (CVP) analysis from the accounting profession perception is a managerial accounting technique that is concerned with the effect of sales volume and product costs on operating profit of a business. According to Hilton, (2000:312), cost-volume-profit (CVP) analysis focuses on the number of units sold as the sole cost and revenue driver. In other words, sales revenue is assumed to be linear in terms of quantity of the units sold. Conceptually, conventional linear cost-volume-profit (CVP) analysis is a simplified, short term planning technique that evolved as a practical version of the theoretical model of a firm (Marshall, A. 1890). From an accounting perspective it is compatible with the direct, or variable costing method of inventory valuation. To use the CVP model, a company must separate total costs into fixed and variable categories. The only activities that are allowed to affect variable costs in traditional cost-volume-profit analysis are production output and sales. Accordingly, fixed costs are those costs that do not vary with changes in the activity level. Hence, fixed costs are not constant. By definition, fixed simply means that these costs are not driven by short run changes in production or sales volume. Although explicit recognition of non-production volume related cost drivers is a key concept in activity based costing, the idea is ignored in the conventional linear CVP model. It is important to recognize that the concept of fixed and variable costs is a short run concept. All costs tend to vary in the long run as the company adds to its’ capacity to produce and distribute products and services.
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SIMILAR ACCOUNTING FINAL YEAR PROJECT RESEARCH TOPICS
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1. AUDITOR’S OPINION AND FINANCIAL REPORTING QUALITY A STUDY OF FIRST BANK MAIN BRANCH, KADUNA STATE
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2. ALLOCATION OF FUNDS ACROSS EXPENDITURE HEADS IN THE NIGERIAN PUBLIC TEACHING HOSPITALS (A CASE STUDY OF LAGOS UNIVERSITY TEACHING HOSPITAL, LAGOS)
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3. COMPUTERIZED CRIME TRACKING INFORMATION SYSTEM CASE STUDY OF NIGERIAN POLICE, ENUGU
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4. THE EFFECT OF PROPER ACCOUNTING RECORD IN SMALL AND MEDIUM SCALE ENTERPRISES (A CASE STUDY OF EXCEL PURE WATER COMPANY OLEH DELTA STATE)
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5. THE IMPACT OF FINANCIAL ACCOUNTING ON THE CORPORATE PERFORMANCE OF BUSINESS ORGANIZATION [A CASE STUDY OF NIGERIAN BREWERIES PLC]
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6. THE EVALUATION OF CUSTOMER SERVICES IN BANKING INDUSTRY (A CASE STUDY OF FIRST BANK NIGERIA PLC)
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7. THE IMPACT OF INTERNATIONAL FINANCIAL REPORTING STANDARD (IFRS) ON THE QUALITY OF FINANCIAL STATEMENTS (A CASE STUDY OF FIRST BANK PLC)
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8. THE IMPACT OF PROMOTIONAL STRATAEGY ON THE DEVELOPMENT OF INSURANCE IN NIGERIA
» ABSTRACT The purpose at this research is concerned on the impact of the government policies in regulating the activities of insurance companies operat...Continue Reading »Item Type & Format: Project Material - Ms Word | 78 pages | Instant Download | Chapter 1-5 | ACCOUNTING DEPARTMENT
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9. PROPERTY TAX ASSESSMENT ON RESIDENTIAL PROPERTIES IN IMO STATE
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10. IMPACT OF ACCOUNTING INFORMATION ON THE DECISION MAKING PROCESS OF AN ORGANIZATION.
» CHAPTER ONE 1.0 INTRODUCTION 1.1 BACKGROUND OF THE STUDY. At independence, Nigeria joined the committee of nation with the hope for a better tomorrow....Continue Reading »Item Type & Format: Project Material - Ms Word | 52 pages | Instant Download | Chapter 1-5 | ACCOUNTING DEPARTMENT