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The analysis of cost-profit-volume in making a decision about the volume of activity of a company

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  • Nicolae SICHIGEA
  • Tudor CIUREZU

    (University of Craiova)

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    Abstract

    This work tries to dimension the volume of activity so that it can emphasis the break even point and the predicted volume for the desired profit. The relationship between volume-cost-profit, known as economies of scale, is explained by the unit profit growth as the volume of production raises, as a consequence of the decrease of the unit cost by reducing the fixed unit costs and keeping the variable unit costs as they are. There are analyzed the effect in trying to eliminate the competition and in practicing a political monopoly by the top companies and the measures of political economy undertook to erase the unfair competition and dumping.

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    File URL: http://feaa.ucv.ro/FPV/009-08.pdf
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    Bibliographic Info

    Article provided by University of Craiova, Faculty of Economics and Business Administration in its journal Finance - Challenges of the Future.

    Volume (Year): 1 (2009)
    Issue (Month): 9 (May)
    Pages: 66-69

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    Handle: RePEc:aio:fpvfcf:v:1:y:2009:i:9:p:66-69

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    Related research

    Keywords: cost; profit; volume of activity; economies of scale;

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