scholarly journals Cost-Volume-Profit Analysis Untuk Kondisi Uncertainty

2010 ◽  
Vol 2 (1) ◽  
pp. 43
Author(s):  
Wiwiek Dianawati
Keyword(s):  
Decision Making ◽  
Fixed Cost ◽  
Fixed Costs ◽  
Profit Analysis ◽  
Break Even Point ◽  
High Level

AbstrackHotels tend to have a high level of fixed cost owing to the levels of investment required. This should result in above normal profits in good times, as variable costs remaining will form a smaller proportion of additional revenue. However, while high profits can be achieved above the break-even point, high losses will result if revenue is significantly reduced. Thus much attention is given to the traditional CVP model (which ignores uncertainty), as failure to cover fixed costs in the long term can result bankruptcy for organization. This article examines the basic CVP model and describes how to include uncertainty during the decision making process.Key words: CVP model, Break-Even Point, uncertainty

scholarly journals OPERATIONAL LEVERAGE AS A SOURCE OF PROFITABILITY OF BUSINESS IN CROATIA

2019 ◽  
Vol 17 (1) ◽  
Author(s):  
Vedran Šupuković ◽  
Zvonko Merkaš ◽  
Zoran Gajić
Keyword(s):  
Fixed Cost ◽  
Fixed Costs ◽  
Total Revenue ◽  
Commercial Policy ◽  
Main Hypothesis ◽  
Revenue Growth ◽  
Organic Growth ◽  
Net Profit ◽  
The Republic ◽  
High Level

Operational leverage measures the level of fixed costs in the company’s total expense and has a significant impact on the profitability of a company, especially in activities where large initial investment is necessary, and long acclimatization timeframes and high levels of revenue are needed to reach the profitability threshold. Fixed costs do not grow linearly with revenue growth and thus negatively affect profit with an insufficient level of total revenue. The paper explores the possibilities of using an operational leverage in combination with commercial policy in order to create a profit multiplier. Research has been conducted in companies in the Republic of Croatia that operate in continuity with low levels of profitability, up to 5% of net profit. In the research, the main hypothesis of work is set, by which the operational leverage is defined as a profit multiplier under the conditions of even the smallest organic growth of the enterprise in case it also operates with a high level of fixed costs. The paper begins with the fact that the effect of the operational leverage is of particular importance in certain segments of the economy that are constrained by the impossibility of entering into part of fixed costs and that their increase in profitability depends solely on the level of healthy organic growth. Accordingly, a model is considered in which an operational leverage has the ability to progressively leverage profitability, which in combination with the adequate application of commercial policy measures determines the dynamic character or processes that generate a multiplication effect even in the case of very small revenue growth. In this and such context, we are talking about the significant effect of operational leverage on company’s profitability even when neglected revenue growth affects the level of fixed cost reduction in relation to total revenue, thereby increasing profitability.

Investigating sponsor decision-making: the role of schema theory, agency conflicts, and signaling theory in the persistence of naming rights agreements

2020 ◽  
Vol 21 (3) ◽  
pp. 467-486 ◽  
Author(s):  
Jonathan A. Jensen ◽  
David Head ◽  
Christopher Mergy
Keyword(s):  
Decision Making ◽  
Schema Theory ◽  
Agency Conflicts ◽  
Data Set ◽  
Content Type ◽  
Naming Rights ◽  
High Level ◽  
Sport Facilities

PurposeNaming rights sponsorships of sport facilities are among the most highly visible marketing agreements in the world. However, factors that may lead one sponsorship to persist for decades, while others end after just a few years, have yet to be investigated. Thus, this study examines the decision-making of brand marketers by investigating the predictors of a sponsoring brand's decision to either continue or dissolve such agreements.Design/methodology/approachUtilizing a global data set of 219 naming rights agreements, an empirical approach is utilized to isolate whether a variety of factors increase or decrease the probability of sponsorship dissolution.FindingsResults indicate that agreements entered into with new, as of yet-unnamed facilities lead to a reduction in the probability of dissolution, with a high level of brand equity also reducing the probability of dissolution. Agency conflicts may also play a role, as the sponsoring firm being headquartered in the same metropolitan area as the facility also contributes to the persistence of such agreements.Originality/valueThese results are intended to assist both sides of what is ideally a long-term relationship in better understanding the factors that may either contribute to or inhibit longer-term partnerships.

scholarly journals EVALUASI PENCAPAIAN LABA PADA HOTEL SAHID KAWANUA MANADO DENGAN MENGGUNAKAN ANALISIS COST VOLUME PROFIT (CVP)

2018 ◽  
Vol 13 (04) ◽  
Author(s):  
Aristion Bunga ◽  
Ventje Ilat ◽  
Dhullo Afandy
Keyword(s):  
Data Processing ◽  
Cost Accounting ◽  
Fixed Costs ◽  
Literature Study ◽  
Microsoft Excel ◽  
Profit Analysis ◽  
Starting Point ◽  
Margin Of Safety ◽  
Break Even Point ◽  
Operational Data

The problem in this research is how to evaluate the achievement of profit by using cost volume profit analysis (CVP) at Hotel Sahid Kawanua Manado, with the starting point from the backgound of competition and growth of hotels that increasingly mushrooming in Manado city. This study aims to determine the calculation and profit planning at Hotel Sahid Kawanua Manado by using sales operational data by using cost volume profit analysis (CVP) for multi product in 2015-2017, and to determine Break Even Point (BEP), profit planning and find out what level of margin of safety (minimum selling rate of company not to suffer losses) in year 2015-2017. The data used comes from literature study, observation and interview on the object of research. This data processing uses the help of Microsoft Excel 2016 program to perform the separation of semivariable costs into fixed costs and variable costs. Besed on the calculation of cost volume profit analysis (CVP), showed that Hotel Sahid Kawanua Manado has done the evaluation of the achievement of earnings well seen from the level of profit generated and the level of margin of safety is increasinng from year to year.Keywords : Cost Accounting, Cost Volume Profit Analysis (CVP), Earnings Achievement

scholarly journals Analisis Cost-Volume-Profit untuk Perencanaan Laba pada UD. Budi Luhur Demak

2019 ◽  
Vol 21 (1) ◽  
pp. 9-17
Author(s):  
Erawati Kartika ◽  
Puji Setya Sunarka
Keyword(s):  
Decision Making ◽  
Sales Volume ◽  
Fixed Costs ◽  
Profit Analysis ◽  
Minimum Number ◽  
The Relationship ◽  
A Company ◽  
Descriptive Method

Profit is one indicator in evaluating the performance of a company. To achieve the required profit, good profit planning is needed. Because with the existence of better profit planning, the company in controlling costs will be more directed. Cost-volume-profit analysis (cost-volume-profit) is a very necessary compilation of companies wanting to do profit planning and decision making related to the relationship between costs, sales volume and prices. The purpose of this study was to study how cost-volume-profit in 2015-2016 can be used for income in 2016 at UD. Budi Luhur Demak. The method used was descriptive method. The results of this study indicated that cost-volume-profit analysis from 2015-2016 at UD. Budi Luhur increased profits while sales volume decreased and fixed costs increased. Through this cost-volume-profit analysis, it can be predicted the minimum number of sales that must be achieved to obtain agreed profits in 2016. It is better if company management can apply cost-volume-profit analysis in the profitability.

Development of the Urban Environment Based on the Optimization of Management Decision-Making

2020 ◽  
Vol 26 (3) ◽  
pp. 322-327
Author(s):  
V. M. Medvedev
Keyword(s):  
Decision Making ◽  
Urban Environment ◽  
Management Decision ◽  
Practical Implementation ◽  
Management Decisions ◽  
Environment Management ◽  
Management Decision Making ◽  
High Level

The presented study identifies approaches to decision-making aimed at the optimal development of the urban environment.Aim. The study aims to develop proposals for improving methodological approaches aimed at the development of the urban environment and for using these approaches in the preparation of the corresponding management decisions.Tasks. The author assesses the problem of urbanization and shows how it affects the need to modernize the urban environment; formulates the principles of optimization of management decision-making aimed at the development of the urban environment; evaluates the possibility of the practical implementation of these principles (through the example of the federal city of St. Petersburg).Methods. This study uses strategic analysis, systems and case-based approach, comparative and retrospective analysis.Results. The practical aspects of designing the processes and approaches to urban environment management are examined. The efficiency of management is shown to depend largely on the optimization of management decisions that could improve the effectiveness of individual services aimed at the formation and development of a modern urban environment in the long term. The study describes the successful experience of St. Petersburg in developing the complex of urban environment management services.Conclusions. Improving urban environment management is an important aspect of increasing the population’s quality of life. As evidenced by St. Petersburg’s experience, to achieve a high level of comfort in the urban environment it is necessary to actively use the principles of consistency, innovation, and public participation in decision-making. The author recommends normative consolidation of these principles and their more active practical application in the management of Russian cities.

scholarly journals PEMANFAATAN COST PROFIT VOLUME ANALISYS

DEDIKASI ◽  
2020 ◽  
Vol 21 (1) ◽  
pp. 1
Author(s):  
Elfreda Aplonia Lau
Keyword(s):  
Production Planning ◽  
Variable Cost ◽  
Fixed Cost ◽  
Selling Price ◽  
Fixed Costs ◽  
Production Methods ◽  
Volume Analysis ◽  
Fixed Prices ◽  
Break Even Point ◽  
Cost Determination

This descriptive research aims to describe cost profit, volume analysis and show its use in determining the minimum production quantities that must be produced and sold in various conditions where changes in selling prices, changes in variable costs, changes in fixed costs or changes in the composition of the sales mix. Do these changes have an impact on cost profit volume analysis or BEP?This study also aims to apply the use of Cost profit volume analysis in sales or production planning, planning for normal selling prices, planning for production methods and determining the plant's closing point (shut down point)The results showed that: 1. BEP can change because of a. there is a change in the selling price while the costs are fixed, there will be a change in the Break Even Point , if there is an increase in the selling price it will decrease the BEP point. And vice versa if there is a determination of the selling price it will raise the BEP point. b) changes in variable costs with fixed selling price conditions, there will be a change in Braek Even Point points in proportion to these changes, i.e. if an increase in variable costs will increase the BEP point. And vice versa if there is a variable cost determination will reduce the point BEP.c) changes in fixed costs with the variable costs and fixed prices, there will be a change in the Braek Even Point point proportionally to these changes, if an increase in fixed costs will increase the point BEP And vice versa if there is a fixed cost determination will reduce the BEP point. 2. BEP can be used for sales or production planning in order to obtain the desired profit. 3. BEP can be used for planning the normal selling price, ie the selling price of a product that can help the company achieve the desired profit target.4 BEP can be used in the selection of production methods (labor intensive or capital intensive) .5 BEP can be used to close the company or not.

Fair Allocation Fixed Cost Using Cross-Efficiency Based on Pareto Concept

2020 ◽  
Vol 37 (01) ◽  
pp. 1950036
Author(s):  
Hamid Sharafi ◽  
Farhad Hosseinzadeh Lotfi ◽  
Gholam Reza Jahanshahloo ◽  
Somayeh Razipour-GhalehJough
Keyword(s):  
Decision Making ◽  
Cost Allocation ◽  
Fixed Cost ◽  
Data Envelopment ◽  
Fair Allocation ◽  
Fixed Costs ◽  
Suggested Model ◽  
Shared Resources ◽  
Decision Making Units ◽  
Significant Point

Among homogeneous entities, there are some shared resources from which all the entities benefit. A significant point is to allocate the fixed costs of these shared resources equitably between entities. Data envelopment analysis is a technique applied for decision-making, concerning and evaluating the performance of decision-making units. One of the functions of these units is to solve the fair fixed cost allocation problem, based on the performance of a set of homogeneous decision-making units. In this paper, a method for allocating fixed costs using cross efficiency has been suggested, where the obtained result is Pareto cross-efficient. Moreover, the proposed method helps estimate the value of [Formula: see text] (lower bound of weights) and the mode of selecting [Formula: see text] for the suggested model using the standard deviation. Finally, by using a numerical example, the proposed method of allocating fixed costs is compared to the previous ones.

scholarly journals Analisis Break Even Point Penambangan Sirtu PT. Klawafun Alam Lestari Papua Barat

2019 ◽  
Vol 2 (2) ◽  
pp. 76-83
Author(s):  
Fernando Nanlohy ◽  
Juanita R. Horman
Keyword(s):  
Quantitative Method ◽  
Production Costs ◽  
Variable Cost ◽  
Fixed Cost ◽  
Selling Price ◽  
Fixed Costs ◽  
Labor Costs ◽  
Capital Costs ◽  
Papua Barat ◽  
Break Even Point

This study aims to analyze Break Even Point of mining of sirtu at PT. Klawafun Alam Lestari Provinsi Papua Barat. The method used in this research is quantitative method. Break Even Point shows the point where income is equal to cost. Intended costs are variable costs and fixed costs. Where fixed costs consist of capital costs and labor costs, while variable costs consist of production costs. From the results of data collection and calculation, the fixed cost is Rp. 9,501,158,600 and variable cost of Rp. 48,972/m3, at the selling price of sirtu Rp. 150.000/m³. From the analysis, Break Even Point of mining of sirtu is obtained when the minimum mining production reaches 94,045 m³/year with an income of Rp. 14,106,720,810.07/year.

scholarly journals Decision-making in sustainable energy transition in Southeastern Europe: probabilistic network-based model

2021 ◽  
Vol 11 (1) ◽  
Author(s):  
Nena Hribar ◽  
Goran Šimić ◽  
Simonida Vukadinović ◽  
Polona Šprajc
Keyword(s):  
Decision Making ◽  
Bayesian Networks ◽  
Sustainable Energy ◽  
Energy Transition ◽  
Southeastern Europe ◽  
Evaluation Tool ◽  
Probabilistic Network ◽  
Level Of Economic Development ◽  
High Level

Abstract Background Sustainable energy transition of a country is complex and long-term process, which requires decision-making in all stages and at all levels, including a large number of different factors, with different causality. The main objective of this paper is the development of a probabilistic model for decision-making in sustainable energy transition in developing countries of SE Europe. The model will be developed according to the specificities of the countries for which it is intended—SE Europe. These are countries where energy transition is slower and more difficult due to many factors: high degree of uncertainty, low transparency, corruption, investment problems, insufficiently reliable data, lower level of economic development, high level of corruption and untrained human resources. All these factors are making decision-making more challenging and demanding. Methods Research was done by using content analysis, artificial intelligence methods, software development method and testing. The model was developed by using MSBNx—Microsoft Research’s Bayesian Network Authoring and Evaluation Tool. Results Due to the large number of insufficiently clear, but interdependent factors, the model is developed on the principle of probabilistic (Bayesian) networks of factors of interest. The paper presents the first model for supporting decision-making in the field of energy sustainability for the region of Southeastern Europe, which is based on the application of Bayesian Networks. Conclusion Testing of the developed model showed certain characteristics, discussed in paper. The application of developed model will make it possible to predict the short-term and long-term consequences that may occur during energy transition by varying these factors. Recommendations are given for further development of the model, based on Bayesian networks.

NONRADIAL APPROACH TO ALLOCATING FIXED-COSTS AND COMMON REVENUE USING CENTRALIZED DEA

2014 ◽  
Vol 13 (01) ◽  
pp. 29-46 ◽  
Author(s):  
SEBASTIÁN LOZANO
Keyword(s):  
Decision Making ◽  
Data Envelopment Analysis ◽  
Simple Approach ◽  
Fixed Cost ◽  
Data Envelopment ◽  
Fixed Costs ◽  
Decision Making Units ◽  
Allocation Methods

In this paper, a simple approach to allocating fixed costs and common revenue among different units is presented. It is based on centralized data envelopment analysis (DEA) and uses a weighted, slacks-based, nonradial metric. The approach is units-invariant and takes into account the inefficiencies in the assessed decision making units (DMUs). The approach works when the fixed cost is a complement of another input as well as when no other inputs exist. The proposed approach is compared with existing allocation methods using several datasets from the literature.

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