portada Examining the relationship between contribution and productivity capacity (en Inglés)

Examining the relationship between contribution and productivity capacity (en Inglés)

Formato

Libro Físico

Autor

Ahmed Ameen

Editorial

Grin Verlag

Idioma

Inglés

N° páginas

Encuadernación

Tapa Blanda

Dimensiones

21x14.8x0.2 cm

Peso

0.05 kg.

ISBN13

9783346033352

Categorías

Empresa y gestión

Examining the relationship between contribution and productivity capacity (en Inglés)

Ahmed Ameen (Autor) · Grin Verlag · Tapa Blanda

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Reseña del libro "Examining the relationship between contribution and productivity capacity (en Inglés)"

Essay from the year 2019 in the subject Business economics - Accounting and Taxes, grade: 0.98, Suez Canal University (English Commerce), course: Cost Accounting, language: English, abstract: This paper examines the relationship between production capacity and contribution. A total of 81 companies in Michigan City are to be sampled and their views analyzed so as to make a policy making recommendations to the cost accountants and production managers. Both production/optimal output and contribution are factors of Cost Volume Profit (CVP) analysis. While many perceive fixed costs be the main factor influencing the production capacity, there is a research gap on this fact. This is due to the fact that variable cost varies with production levels. Being that contribution takes into consideration only the fixed cost, it is a critical factor in determining the production capacity and the optimal production levels thereof. This has been proven from the literature conducted in this research paper. 81 emails were sent, but only 73 responded which is 90%. Over 80% of the 73 companies from which views were sampled confirmed this fact, though an overwhelming majority, were yet to make their production decisions based on the level of contribution. This paper, therefore, recommends that contribution be included in determination of production capacity, the current system be changed, sensitivity analysis be done for all assumptions and a further research be done on this topic, whenever assumptions are made, it is advisable that a sensitivity analysis be performed to determine to ensure that more realistic results are realized and a further research conducted on this topic.