Analysis Of Performance Of Cost Volume Profit (CVP) Analysis In Manufacturing Companies In Tanzania - A Case Of Tanzania Portland Cement Company (TPCC))

ABSTRACT

This paper presents the study on the subject of the analysis of performance of Cost Volume Profit (CVP) analysis in manufacturing companies in Tanzania, a case of Tanzania Portland Cement Company. Cost volume profit analysis is a model which is used to plan profit. The general objective of this study was to determine if CVP can assist management in formulating pricing policies by projecting the effect of different price structures on cost and profit and to highlight the usefulness of CVP analysis in manufacturing companies in Tanzania. Specifically, this study desired to understand the relevancy and efficiency of Cost Volume Profit analysis as a decisions model in helping manufacturing business to face the challenges caused by the ever changing business environment predominantly in Tanzania, as policy makers in making relevant policies. A case study survey type of research was used in which a sample from the target population was selected as a source of information needed to achieve researcher‟s objectives. Consequently, random probability sampling and non-random sampling were selected. This study included both qualitative and quantitative data. Thus, the researcher collected data by administering a questionnaire along with interviews to pave the way for easy analysis of data. Focus group discussion was also conducted for top management team and employees who are working in management accounting unit as well as production manager.