An Determinant Analysis of Cost Volume Profit of E.I.D-Parry (India) Limited Pugalur

Abstract

Cost Volume Profit Analysis (CVPA) has become a most powerful tool to maximize profits in today’s turbulent competitive market scenario. CVP analysis immensely helps the company to make vital decisions to boost up the sales and to earn profit.CVP analysis demonstrates the association among various elements in planning of profit, in particular, variable cost, sales volume, sales mix and product cost. CVP examination is the reason for understanding in commitment of marginal pricing, related short run choices, target costing and exchange value. Cost Volume Profit analysis has incredible breadth in different administrative decision making. It helps the administration in deciding the nature of products to be created to accomplish required benefits, the amount of items to be delivered at any rate limit level, achieving required benefits under various cost and volume relationship. This study has an objective to measure the profitability position of the factory. To satisfy the targets, the five year financial information from the time frame 2016 to 2020 in the form of secondary data. The data are then analyzed and suggestions are given. It is inferred that CVP analysis is utilized to raise production limit and use trend setting technology to diminish the cost of manufacturing and to take right decisions and to gain profit. Cost Volume Profit analysis inspects the conduct of changes in the yield level, selling value, variable expense and fixed cost of a product. This study assists to know about the financial strengths and shortcoming of the factory intoto.