Short-Term Cost-Volume-Benefit Decision Making
- 1 Department of Business and Finance.
ISSN: 1133-3197, 1697-5731
Year of publication: 2021
Issue Title: Sustainable Economic Development: Pattern and Perspective
Volume: 39
Issue: 8
Type: Article
More publications in: Estudios de economía aplicada
Abstract
Cost-volume-profit relationships are the strategy for short-term decisions. This article analyzes and examines the relationship between changes in activity and changes in total sales revenue, costs, and net profit. Making a profit in times of economic/financial uncertainty is not easy for companies. The cost of materials, labor, equipment, advertising, etc., means that it is exceedingly difficult to stay in business. Questions such as: How much do companies have to produce and sell to break even in times of uncertainty? How do short-term decisions affect the business and capital structure? The answer is the relationship between sales revenue and costs.
Bibliographic References
- J. Booton, J (2012). Moody’s upgrades ford’s credit rating returns blue oval trademark. Fox Business, May 22
- Cardinaels, E. (2013). The interplay between cost accounting knowledge and presentation formats in cost-based decision-making. Elsevier, 33(6), 582-602.doi:10.1016/j.aos.2007.06.003
- Drury, C. (2018). Management and cost accounting (11° ed.). Andover, Hampshire, United Kingdom: CENGAGE.