scholarly journals Cost-volume-profit Analysis and Decision Making in the Manufacturing Industries of Nigeria

2015 ◽  
Vol 1 (1) ◽  
pp. 8-16
Author(s):  
J.C Ihemeje
Keyword(s):  
Decision Making ◽  
Longitudinal Research ◽  
Secondary Data ◽  
Manufacturing Industries ◽  
Order Quantity ◽  
Longitudinal Research Design ◽  
Profit Analysis ◽  
Correlation Techniques ◽  
The Cost ◽  
Positive Effect

This study determined the effect of cost-volume-profit analysis in the decision making of manufacturing industries. The study combined both survey research and longitudinal research design. Both primary and secondary data were used for collection. They were analyzed using regression and correlation techniques. The results revealed that the sales value of a product and the quantity of the product manufactured has a positive effect on profit made on the product, also that there is a significant relationship between the cost of production and profit. The reorder and economic order quantity was also determined as a base for assessing decision-making opportunities. Based on the result, the researcher recommends that manufacturing industries should always adopt cost-volume-profit analysis in their decision making.

scholarly journals Impact of Reinsurance on Performance of Nepalese Insurance Companies

2019 ◽  
Vol 3 (ii) ◽  
Author(s):  
Rajendra Maharjan
Keyword(s):  
Cost Efficiency ◽  
Comparative Research ◽  
Insurance Industry ◽  
Secondary Data ◽  
Insurance Companies ◽  
Cross Sectional ◽  
Solvency Capital ◽  
The Cost ◽  
Positive Effect ◽  
Variable Performance

Reinsurance is considered as backbone of the insurance industry in developed and developing countries as it indirectly injects capital and Nepalese insurance companies are no exception. Thus, this study is aims to find out whether the use of reinsurance arrangement lead to positive effect or not? Three portfolios have been formed life, nonlife and industry. The study used 11 years unbalanced cross sectional secondary data from 2007/08 to 2017/18. The sample of the study consists of seven from life and nine from nonlife with 138 firm years’ observations. The dependent variable performance is measured by profitability (ROA and ROE) and solvency while reinsurance ceded as explanatory variable. Capital employed and size of the firm are considered as control variables. The study employed descriptive cum causal comparative research design. Regression analysis has been performed to see the effect of reinsurance on firm performance. The result depicts that reinsurance has a positive and significant impact on performance of insurance companies. This finding indicates that reinsurance improves the cost efficiency of primary insurers. Further, reinsurance is a complement for capital in order to enhance solvency while negative relation indicating solvency of the insurers increases with the level of used reinsurance, to the extent that reinsurance and capital can be substitutes of each other. Thus, this study concludes that primary insurers can benefit from reinsurance as its relief on capital, diversify risk and in turn helps to earn profitability by sharing the risk with reinsurers. Key words: Reinsurance, Profitability, Solvency, Capital, Premium

scholarly journals The Low-Carbon Supply Chain Coordination Problem with Consumers’ Low-Carbon Preference

2020 ◽  
Vol 12 (9) ◽  
pp. 3591 ◽  
Author(s):  
Dan Wu ◽  
Yuxiang Yang
Keyword(s):  
Decision Making ◽  
Supply Chain ◽  
Cost Sharing ◽  
Supply Chain Coordination ◽  
Low Carbon ◽  
Order Quantity ◽  
Coordination Problem ◽  
Emission Abatement ◽  
The Cost ◽  
The Impact

In this paper, we study the supply chain coordination problem between a manufacturer and a retailer regarding consumers’ low-carbon preferences. The retailer considers the market demand to determine the order quantity; the manufacturer chooses how to reduce emissions according to the retailer’s order quantity. We consider four cases, including the non-emission abatement, the emission abatement of decentralized decision-making, the centralized decision-making and the retailer providing a cost-sharing contract. By comparing the four cases, we find that the case of a retailer providing a cost-sharing contract can coordinate the supply chain, achieving a Pareto improvement for the manufacturer and retailer. In addition, we use the Rubinstein bargaining model to determine the cost-sharing ratio. Finally, numerical simulations are given to analyze the impact of the cost-sharing ratio on the equilibrium results, including the profit and the emission abatement level. Furthermore, we investigate the impact of the cost-sharing ratio and consumers’ low-carbon awareness on the profits of the members in the supply chain. We find that the equilibrium results, including the order quantity, the emission abatement level and the profits of the members in the supply chain under contract, are higher than the ones under centralized decision-making. The results show that in the higher low-carbon awareness market, retailers should formulate a reasonable cost-sharing ratio to achieve emission reduction coordination.

Relationship between Interest Rates and Gearing Ratios of Firms Listed in the Nairobi Securities Exchange

2016 ◽  
Vol 1 (1) ◽  
pp. 30
Author(s):  
Billy Muthee ◽  
Dr. J Adudah ◽  
Hendrick Ondigo
Keyword(s):  
Interest Rates ◽  
Firm Size ◽  
Longitudinal Research ◽  
Negative Relationship ◽  
Secondary Data ◽  
Annual Reports ◽  
Longitudinal Research Design ◽  
Growth Firms ◽  
The Relationship ◽  
Interest Expense

Purpose: The objective of this study was to establish the relationship between interest rates and gearing ratios of firms listed in the Nairobi Securities Exchange.Methodology: The study was carried out using a longitudinal research design, employing secondary quantitative data. The population for this study constituted of all listed companies in the Nairobi Securities Exchange. As at December 2013, there are 62 companies listed on the Nairobi Securities Exchange. This study did not sample and hence a census survey was carried out for the study. The study used secondary data. All the data was collected by review of documents, annual reports of the companies, the Nairobi Securities Exchange Handbooks and published books of accounts. The selected period was year 2009 to year 2013 (5 years).The researcher used frequencies, averages and percentages in this study. The researcher used Statistical Package for Social Sciences (SPSS) to generate the descriptive statistics and also to generate inferential results. Regression analysis was used to demonstrate effect of interest rate on the gearing ratio of listed firms.Results: These results showed that there is a negative relationship between gearing ratio and interest expense and profitability as supported by beta coefficients of -0.486 and -0.129 respectively. Firm size had a positive correlation (0.275), which means that an increase in firm size causes an increase in the gearing ratio. The analysis also yields results that showed that interest expense, firm size and profitability were statistically significant.Unique contribution to theory, practice and policy: the study recommended that; the firms should adopt strategies that increase their firm size resulting to a scenario whereby they increase their collateral and thus granting them the ability to access more debt, firms should ensure that they optimize their profits so as to reduce their gearing ratio and thus cause growth, firms should seek to adopt other ways of financing their activities since interest expense had a negative relationship with gearing ratio.

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

2018 ◽  
Vol 4 (2) ◽  
pp. 99-114
Author(s):  
Enkeleda Lulaj ◽  
Etem Iseni
Keyword(s):  
Business Environment ◽  
P Value ◽  
Important Indicator ◽  
Manufacturing Enterprises ◽  
Service Companies ◽  
Profit Analysis ◽  
Important Relationship ◽  
The Cost ◽  
Positive Effect

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.

scholarly journals Inventory Control and Financial Performance of Listed Conglomerate Firms in Nigeria

2020 ◽  
Vol 11 (2) ◽  
pp. 41
Author(s):  
Folajimi Festus Adegbie ◽  
Appolos Nudubisi Nwaobia ◽  
Grace Oyeyemi Ogundajo ◽  
Olusoji David Olunuga
Keyword(s):  
Financial Performance ◽  
Inventory Control ◽  
Secondary Data ◽  
Significant Positive Effect ◽  
Usage Control ◽  
Research Instrument ◽  
Security Control ◽  
Cost Of Production ◽  
The Cost ◽  
Positive Effect

Inventory constitutes the substantial portion of the cost of production of firms. Conglomerate firms faced a challenge pf dwindling return due to the huge cost of production of which inventory constitute the larger portion. Studies have shown that effective inventory management which entails forecasting, acquisition, transportation, inspection, material handling, storing, warehousing, suppliers’ management and inventory security are germane in reducing the cost of production to the barest minimum and enhance the returns. This study examined the effect of inventory control (inventory procurement control, inventory security control and inventory usage control) on the financial performance of listed conglomerate firms in Nigeria. The study adopted both field and empirical survey research design. The population of the study constitutes the entire six (6) listed conglomerates as at 31st December, 2018. The target population represent 108 staff of the finance and store sections out of which seventy-two were selected using quota sampling techniques for the administration of structure questionnaire, while total enumeration technique was used for the secondary data. The research instrument was validated by checking the constructs of the questions in the questionnaire using content validity. Cronbach Alpha reliability test was carried out and the result showed that the research instrument is reliable with an overall value of 0.988 which is greater than 0.70-0.80 threshold. 68 out of 72 administered structured questionnaire were retrieved representing 94.4% retrieved and used for the analysis. Secondary data extracted from the audited annual reports and accounts for a period of twenty-two (22) years yielding 110 unbalanced firm year observations were used. Descriptive and inferential statistics were employed for testing the hypotheses. The findings revealed that: inventory control significantly affects financial performance of listed conglomerate firms in Nigeria (Adj.R2= 0.873, F(3,65)=10.19, p< 0.1); inventory procurement control has significant positive effect on financial performance (β= .628, R2= 0.565, t(67)= 3.494, p <0.1); inventory security control exerts significant positive effect on financial performance (β= .535, R2= 0.706, t(67)= 2.684, p< 0.1); and inventory usage control significantly and positively influence financial performance (β= .531, R2= 0.492, t(67)= 2.844, p <0.1). Also, inventory turnover period exerted insignificant positive effect on financial performance (β= 4.64, R2= 0.006, t(108)= 0.83, p> 0.1). The study concluded that inventory control significantly influence financial performance of listed conglomerate firms in Nigeria. The study recommended that management of the firm should improve on suppliers’ strategic relationship and provides adequate automated security for monitoring the movements of inventory in the firm.

scholarly journals The Influence of Promotion Costs and General Administrative to Cost of on PT. Jakarta International Hotels and Development.Tbk

JURNAL PUNDI ◽  
2020 ◽  
Vol 4 (1) ◽  
Author(s):  
Febryandhie Ananda ◽  
Safrul Rahmadhan
Keyword(s):  
Financial Performance ◽  
Quantitative Research ◽  
Linear Regression Analysis ◽  
Secondary Data ◽  
Multiple Linear Regression Analysis ◽  
Positive Influence ◽  
T Test ◽  
Variable Cost ◽  
The Cost ◽  
Positive Effect

This research was conducted at PT. Jakarta International Hotels And Development.Tbk, which aims to determine the influence of promotion costs and the cost of administration against the price of staple inn. Using test tools Eviews 8, with secondary data from the years 2009-2018, quantitative research uses the data type of the time series. With the technique of multiple linear regression analysis, T test, and the test deteminasi (R2).The results of this study show that the Cost of Promotion significant positive effect on the financial performance of the Price of Staple Inn. So the hypothesis one in this study missed. It also happens in the variable Cost of Public Administration affect the financial performance of the Price of Staple Inn. So the hypothesis in this study positive significant. It can be seen from the results of t-Test showing the value prob is equal to 0.04 < alpha of 0.05. This means that the positive influence.

scholarly journals Financial Aberrations of Rural Customers of Business Correspondents: Characteristics, Cases and Curative Strategies

2021 ◽  
Vol 8 (3) ◽  
pp. 401-407
Author(s):  
Samirendra Nath Dhar ◽  
Pintu Prasad Jaiswal
Keyword(s):  
Financial Literacy ◽  
Longitudinal Research ◽  
Financial Inclusion ◽  
Literacy Programs ◽  
Significant Positive Effect ◽  
Literacy Programme ◽  
Male And Female ◽  
Longitudinal Research Design ◽  
Positive Effect ◽  
Financial Process

Financial Inclusion through Business Correspondents is not free from financial aberrations. On the basis of some cases the paper investigated into the types and frequency of the financial aberrations, which are incident on customers .The magnitude of shocks as perceived by the BC customers due to the financial process aberrations and irregularities were gauged on a Likert scale and was found to be significantly high. As these shocks have a bearing on financial resilience, the research further attempted to investigate whether awareness of dealing with the system and thereby increasing financial resilience could be developed through financial literacy programs. A longitudinal research design was adopted and 17-18% of the male and female respondents from each district were exposed to a financial literacy programme in this context as devised by the researchers. It was found that the administration of the program on poor BC customers had a significant positive effect on their awareness and therefore on their build-up of financial resilience. Int. J. Soc. Sc. Manage. Vol. 8, Issue-3: 401-407.

scholarly journals Analisis Pengendalian Persediaan Pakan Dengan Metode Economic Order Quantity (EOQ) Untuk Meminimalisir Biaya

2018 ◽  
Vol 1 (2) ◽  
Author(s):  
Deva Ajib ◽  
Setyo Adjie ◽  
Edi Santoso
Keyword(s):  
Secondary Data ◽  
Raw Material ◽  
Economic Order Quantity ◽  
Economic Order ◽  
Primary Data ◽  
Order Quantity ◽  
Literature Study ◽  
Poultry Farms ◽  
Quantitative Descriptive ◽  
The Cost

This research was carried out with the theme of controlling raw material inventory in Jaya Poultry Farms in Paringan Village, Jenang District, Ponorogo Regency. This study aims to determine the application of the Economic Order Quantity (EOQ) method to reduce the cost of feed supplies and to determine the possibility of increasing the efficiency of corn raw material inventory by the Economic Order Quantity (EOQ) method. This research uses quantitative descriptive methods. The analytical tool used is Economic Order Quantity (EOQ), Frequency of Purchase, Total Inventory Cost (TIC), Safety Stock, Maximum Inventory and Re Order Point. Source of data used in this study are primary data and secondary data. Data collection is done by interview, observation, documentation, and literature study. The results showed that the efficiency of procurement of corn raw material inventories at Jaya Poultry farms could be increased by the Economic Order Quantity (EOQ) method and the use of the Economic Order Quantity (EOQ) method in companies could reduce the cost of corn raw material inventory being cheaper when compared to company policy which has been applied by the company.

scholarly journals MEASURING TERRORISM EFFECTS ON COMPONENTS OF HOSPITALITY AND TOURISM BUSINESSES IN NORTHEASTERN NIGERIA

2020 ◽  
Vol 5 (21) ◽  
pp. 109-122
Author(s):  
Inyang Oduduabasi ◽  
Arokoyu Samuel
Keyword(s):  
Armed Conflict ◽  
Longitudinal Research ◽  
Secondary Data ◽  
Sampling Technique ◽  
Cluster Sampling ◽  
Occupancy Rate ◽  
Event Data ◽  
Boko Haram ◽  
Longitudinal Research Design

This study was carried out to measure terrorism effects on components of tourism businesses (hotels) in northeastern Nigeria using Boko Haram as a case study. Secondary data on nature, date, and the number of fatalities from the Boko Haram attack was sourced from the Armed Conflict Location & Event Data (ACLED). Data on tourism businesses including hotel room occupancy rate, revenue profile, and employees’ profile was sourced from each state tourism development board. A total of 558 hotels were selected in a one-stage cluster sampling technique. The study adopts a longitudinal research design where inferential statistics was performed with the use of SPSS. Results revealed that Boko Haram attacks had significant effects on tourism businesses contributing to the decline in the number of hotel employees, revenue, and room occupancy rate of hotels in the region. The study, therefore, recommends intense media promotion of the areas and States not majorly affected by the crisis, rebuilding of areas and States recovered from the group, provisions of more resilient security apparatus, and general development of social, educational, and economic infrastructures to help revamp the socioeconomic life of the area.

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