IDEAS home Printed from https://ideas.repec.org/a/eur/ejesjr/187.html
   My bibliography  Save this article

Role of Analysis CVP (Cost-Volume-Profit) as Important Indicator for Planning and Making Decisions in the Business Environment

Author

Listed:
  • Enkeleda Lulaj

    (PHd.(cand.) University “Haxhi Zeka “,Peja/Kosovo)

  • Iseni Etem

Abstract

This research intends to know how much the Cost-Volume-Profit Analysis is used to planning and making decisions in the business environment. The research has been done in manufacturing and service enterprises, using the combination of econometric models in order for the research to be as accurate and to have positive effect. The data are realized through structured questionnaires, using the Mann-Whitney U test, Brunner Munzel test, p-value, BootStrap, DF-degree of freedom, percent confidence interval, with the dependent and independent variables etc. In whom case the hypotheses are verified, which are raised .The results of this research showed that amount of product produced has positive effect on sales value to service companies and raising profit to the manufacturing business environment, also exists an important relationship between production and sales, and CVP analysis contributes to growth profitability and break-even in the business environment . So, as conclusion based on the results found from research, cost-volume-profit analysis should be used for making decisions, because the risk threshold evidently decreases by doing such analysis. The great demand from service companies for products it significantly increases profit and producing to manufacturing enterprises.

Suggested Citation

  • Enkeleda Lulaj & Iseni Etem, 2021. "Role of Analysis CVP (Cost-Volume-Profit) as Important Indicator for Planning and Making Decisions in the Business Environment," European Journal of Economics and Business Studies Articles, Revistia Research and Publishing, vol. 4, May - Aug.
    • Handle: RePEc:eur:ejesjr:187
    DOI: 10.26417/ejes.v4i2.p104-120
    as

    Download full text from publisher

    File URL: https://revistia.com/index.php/ejes/article/view/2660
    Download Restriction: no
    File URL: https://revistia.com/files/articles/ejes_v4_i2_18/Lulaj.pdf
    Download Restriction: no
    File URL: https://libkey.io/10.26417/ejes.v4i2.p104-120?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Seongho Song & David Yi, 2011. "The fundraising efficiency in U.S. non-profit art organizations: an application of a Bayesian estimation approach using the stochastic frontier production model," Journal of Productivity Analysis, Springer, vol. 35(2), pages 171-180, April.
    2. Roger Bennett, 2005. "Factors encouraging competitive myopia in the performing arts sector: an empirical investigation," The Service Industries Journal, Taylor & Francis Journals, vol. 25(3), pages 391-401, April.
    3. Thomas More Smith, 2007. "The Impact Of Government Funding On Private Contributions To Nonprofit Performing Arts Organizations," Annals of Public and Cooperative Economics, Wiley Blackwell, vol. 78(1), pages 137-160, March.
    4. David T. Yi, 2010. "Determinants of fundraising efficiency of nonprofit organizations: evidence from US public charitable organizations," Managerial and Decision Economics, John Wiley & Sons, Ltd., vol. 31(7), pages 465-475.
    5. Anonymous, 2013. "Introduction to the Issue," Journal of Wine Economics, Cambridge University Press, vol. 8(2), pages 129-130, November.
    6. Samuel Cameron, 2016. "Past, present and future: music economics at the crossroads," Journal of Cultural Economics, Springer;The Association for Cultural Economics International, vol. 40(1), pages 1-12, February.
    7. Jeffrey Pompe & Lawrence Tamburri & Johnathan Munn, 2011. "Factors that influence programming decisions of US symphony orchestras," Journal of Cultural Economics, Springer;The Association for Cultural Economics International, vol. 35(3), pages 167-184, August.
    8. Kaplan, Andreas M. & Haenlein, Michael, 2010. "Users of the world, unite! The challenges and opportunities of Social Media," Business Horizons, Elsevier, vol. 53(1), pages 59-68, January.
    9. Neslin, Scott A. & Shankar, Venkatesh, 2009. "Key Issues in Multichannel Customer Management: Current Knowledge and Future Directions," Journal of Interactive Marketing, Elsevier, vol. 23(1), pages 70-81.
    10. Anonymous, 2013. "Introduction to the Issue," Journal of Wine Economics, Cambridge University Press, vol. 8(3), pages 243-243, December.
    11. Jessie P. H. Poon & Christine A. Lai, 2008. "Why are Non-profit Performing Arts Organisations Successful in Mid-sized US Cities?," Urban Studies, Urban Studies Journal Limited, vol. 45(11), pages 2273-2289, October.
    12. Mangold, W. Glynn & Faulds, David J., 2009. "Social media: The new hybrid element of the promotion mix," Business Horizons, Elsevier, vol. 52(4), pages 357-365, July.
    13. Marcin Lewicki, 2016. "E-Shop Offer as a Tool Creating Value for Customer," Eurasian Studies in Business and Economics, in: Mehmet Huseyin Bilgin & Hakan Danis & Ender Demir & Ugur Can (ed.), Business Challenges in the Changing Economic Landscape - Vol. 2, edition 1, pages 221-230, Springer.
    14. Kietzmann, Jan H. & Hermkens, Kristopher & McCarthy, Ian P. & Silvestre, Bruno S., 2011. "Social media? Get serious! Understanding the functional building blocks of social media," Business Horizons, Elsevier, vol. 54(3), pages 241-251, May.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Angela Besana & Annamaria Esposito, 2019. "Fundraising, social media and tourism in American symphony orchestras and opera houses," Business Economics, Palgrave Macmillan;National Association for Business Economics, vol. 54(2), pages 137-144, April.
    2. Ashish K. Rathore & Arpan K. Kar & P. Vigneswara Ilavarasan, 2017. "Social Media Analytics: Literature Review and Directions for Future Research," Decision Analysis, INFORMS, vol. 14(4), pages 229-249, December.
    3. Vasile-Daniel Păvăloaia & Elena-Mădălina Teodor & Doina Fotache & Magdalena Danileţ, 2019. "Opinion Mining on Social Media Data: Sentiment Analysis of User Preferences," Sustainability, MDPI, vol. 11(16), pages 1-21, August.
    4. Ravneet Singh Bhandari & Ajay Bansal, 2018. "A Comparison of Psychological and Socio-economic Factors Affecting Individual User’s Social Media Behaviour," FIIB Business Review, , vol. 7(2), pages 126-134, June.
    5. Neirotti, Paolo & Raguseo, Elisabetta & Paolucci, Emilio, 2016. "Are customers’ reviews creating value in the hospitality industry? Exploring the moderating effects of market positioning," International Journal of Information Management, Elsevier, vol. 36(6), pages 1133-1143.
    6. Lin, Xiaolin & Kishore, Rajiv, 2021. "Social media-enabled healthcare: A conceptual model of social media affordances, online social support, and health behaviors and outcomes," Technological Forecasting and Social Change, Elsevier, vol. 166(C).
    7. Torres de Oliveira, Rui & Indulska, Marta & Steen, John & Verreynne, Martie-Louise, 2020. "Towards a framework for innovation in retailing through social media," Journal of Retailing and Consumer Services, Elsevier, vol. 54(C).
    8. Monica Patrut, 2015. "Candidates In The Presidential Elections In Romania (2014): The Use Of Social Media In Political Marketing," Studies and Scientific Researches. Economics Edition, "Vasile Alecsandri" University of Bacau, Faculty of Economic Sciences, issue 21.
    9. Natalia Levina & Manuel Arriaga, 2014. "Distinction and Status Production on User-Generated Content Platforms: Using Bourdieu’s Theory of Cultural Production to Understand Social Dynamics in Online Fields," Information Systems Research, INFORMS, vol. 25(3), pages 468-488, September.
    10. Giannis Milolidakis & Demosthenes Akoumianakis & Chris Kimble, 2013. "Digital traces for business intelligence: A case study of mobile telecoms service brands in Greece," Post-Print halshs-00954440, HAL.
    11. Lashgari, Maryam, 2014. "Social Media Technology Deployment in B2B: A Case Study," INDEK Working Paper Series 2014/9, Royal Institute of Technology, Department of Industrial Economics and Management.
    12. Tajvidi, Mina & Richard, Marie-Odile & Wang, YiChuan & Hajli, Nick, 2020. "Brand co-creation through social commerce information sharing: The role of social media," Journal of Business Research, Elsevier, vol. 121(C), pages 476-486.
    13. Emanuela Jurietti & Andreina Mandelli & Morana Fudurić, 2017. "How do virtual corporate social responsibility dialogs generate value? A case study of The Unilever Sustainable Living Lab," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 24(5), pages 357-367, September.
    14. Wu He & Feng-Kwei Wang & Yong Chen & Shenghua Zha, 0. "An exploratory investigation of social media adoption by small businesses," Information Technology and Management, Springer, vol. 0, pages 1-12.
    15. Wu He & Feng-Kwei Wang & Yong Chen & Shenghua Zha, 2017. "An exploratory investigation of social media adoption by small businesses," Information Technology and Management, Springer, vol. 18(2), pages 149-160, June.
    16. Chung, Alexander Q.H. & Andreev, Pavel & Benyoucef, Morad & Duane, Aidan & O’Reilly, Philip, 2017. "Managing an organisation’s social media presence: An empirical stages of growth model," International Journal of Information Management, Elsevier, vol. 37(1), pages 1405-1417.
    17. Elena Casprini & Alberto Di Minin, 2015. "How are companies facing the social media (r)evolution?," MERCATI & COMPETITIVIT?, FrancoAngeli Editore, vol. 2015(2), pages 67-86.
    18. Mohammad Tipu Sultan & Farzana Sharmin & Alina Badulescu & Darie Gavrilut & Ke Xue, 2021. "Social Media-Based Content towards Image Formation: A New Approach to the Selection of Sustainable Destinations," Sustainability, MDPI, vol. 13(8), pages 1-22, April.
    19. Drago Ruzic & Antun Bilos & Filip Radulovic, 2018. "Preliminary Study Of Personal Marketing In The Digital Environment: Attributes And Perception Of Internet Users In Croatia," Economic Thought and Practice, Department of Economics and Business, University of Dubrovnik, vol. 27(1), pages 209-229, june.
    20. Ajaya Kumar Swain & Ray Qing Cao, 2019. "Using sentiment analysis to improve supply chain intelligence," Information Systems Frontiers, Springer, vol. 21(2), pages 469-484, April.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eur:ejesjr:187. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Revistia Research and Publishing (email available below). General contact details of provider: https://revistia.com/index.php/ejes .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.