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Cost volume profit analysis and profit planning in manufacturing SMEs in Nigeria / Kenneth Enoch Okpala and Chimsunum Osanebi

The manufacturing SMEs encounter many problems, one of which is the inability to earn a sustainable profit for continuity. Inadequate profitability is one the factors responsible for the early death of SMEs in Sub Sahara, Africa. This study examined the usage of the cost volume profit technique on p...

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Main Authors: Okpala, Kenneth Enoch, Osanebi, Chimsunum
Format: Article
Language:English
Published: Accounting Research Institute (ARI) 2020
Subjects:
Small business. Medium-sized business
Planning. Business planning. Strategic planning
Online Access:https://ir.uitm.edu.my/id/eprint/65614/1/65614.pdf
https://ir.uitm.edu.my/id/eprint/65614/
https://apmaj.uitm.edu.my/
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spelling my.uitm.ir.656142022-08-23T08:35:00Z https://ir.uitm.edu.my/id/eprint/65614/ Cost volume profit analysis and profit planning in manufacturing SMEs in Nigeria / Kenneth Enoch Okpala and Chimsunum Osanebi Okpala, Kenneth Enoch Osanebi, Chimsunum Small business. Medium-sized business Planning. Business planning. Strategic planning The manufacturing SMEs encounter many problems, one of which is the inability to earn a sustainable profit for continuity. Inadequate profitability is one the factors responsible for the early death of SMEs in Sub Sahara, Africa. This study examined the usage of the cost volume profit technique on profit planning in manufacturing SMEs as a means to solve the problem. A cross sectional survey research design was adopted, and the study sample population from snowballing consisted of 50 manufacturing SMEs with 1048 senior staff. A questionnaire was used to elicit the respondents’ opinions, and 714 useable copies of the survey were returned. Descriptive statistics, Pearson product-moment correlation, and Regression analysis methods were used for data analysis. The study concluded that cost volume profit analysis has a positive and statistically significant impact on profit planning (β=.645, P=.00<.05). The study recommends that the management of manufacturing SMEs should employ and retain high-caliber accountants and restructure their management team for effectiveness. The decisionmaking process should be streamlined for planning efficiency, and top management should support the cost volume profit analysis model to aid adequate implementation and results. Accounting Research Institute (ARI) 2020-08 Article PeerReviewed text en https://ir.uitm.edu.my/id/eprint/65614/1/65614.pdf Cost volume profit analysis and profit planning in manufacturing SMEs in Nigeria / Kenneth Enoch Okpala and Chimsunum Osanebi. (2020) Asia-Pacific Management Accounting Journal, 15 (2): 10. pp. 207-240. ISSN 2550-1631 https://apmaj.uitm.edu.my/ 10.24191/APMAJ.v15i2-10 10.24191/APMAJ.v15i2-10 10.24191/APMAJ.v15i2-10
institution Universiti Teknologi Mara
building Tun Abdul Razak Library
collection Institutional Repository
continent Asia
country Malaysia
content_provider Universiti Teknologi Mara
content_source UiTM Institutional Repository
url_provider http://ir.uitm.edu.my/
language English
topic Small business. Medium-sized business
Planning. Business planning. Strategic planning
spellingShingle Small business. Medium-sized business
Planning. Business planning. Strategic planning
Okpala, Kenneth Enoch
Osanebi, Chimsunum
Cost volume profit analysis and profit planning in manufacturing SMEs in Nigeria / Kenneth Enoch Okpala and Chimsunum Osanebi
description The manufacturing SMEs encounter many problems, one of which is the inability to earn a sustainable profit for continuity. Inadequate profitability is one the factors responsible for the early death of SMEs in Sub Sahara, Africa. This study examined the usage of the cost volume profit technique on profit planning in manufacturing SMEs as a means to solve the problem. A cross sectional survey research design was adopted, and the study sample population from snowballing consisted of 50 manufacturing SMEs with 1048 senior staff. A questionnaire was used to elicit the respondents’ opinions, and 714 useable copies of the survey were returned. Descriptive statistics, Pearson product-moment correlation, and Regression analysis methods were used for data analysis. The study concluded that cost volume profit analysis has a positive and statistically significant impact on profit planning (β=.645, P=.00<.05). The study recommends that the management of manufacturing SMEs should employ and retain high-caliber accountants and restructure their management team for effectiveness. The decisionmaking process should be streamlined for planning efficiency, and top management should support the cost volume profit analysis model to aid adequate implementation and results.
format Article
author Okpala, Kenneth Enoch
Osanebi, Chimsunum
author_facet Okpala, Kenneth Enoch
Osanebi, Chimsunum
author_sort Okpala, Kenneth Enoch
title Cost volume profit analysis and profit planning in manufacturing SMEs in Nigeria / Kenneth Enoch Okpala and Chimsunum Osanebi
title_short Cost volume profit analysis and profit planning in manufacturing SMEs in Nigeria / Kenneth Enoch Okpala and Chimsunum Osanebi
title_full Cost volume profit analysis and profit planning in manufacturing SMEs in Nigeria / Kenneth Enoch Okpala and Chimsunum Osanebi
title_fullStr Cost volume profit analysis and profit planning in manufacturing SMEs in Nigeria / Kenneth Enoch Okpala and Chimsunum Osanebi
title_full_unstemmed Cost volume profit analysis and profit planning in manufacturing SMEs in Nigeria / Kenneth Enoch Okpala and Chimsunum Osanebi
title_sort cost volume profit analysis and profit planning in manufacturing smes in nigeria / kenneth enoch okpala and chimsunum osanebi
publisher Accounting Research Institute (ARI)
publishDate 2020
url https://ir.uitm.edu.my/id/eprint/65614/1/65614.pdf
https://ir.uitm.edu.my/id/eprint/65614/
https://apmaj.uitm.edu.my/
_version_ 1743110464624132096
score 13.211869

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