BREAK-EVEN THEORY AND ACCOUNTING AS A MANAGEMENT DECISION A TOOL (A CASE STUDY OF NIGERIAN HOECHST PLC)
TABLE OF CONTENTS
CHAPTER ONE
INTRODUCTION
1.1 Background of study 1
Historical backgrounds of Nigerian
Hoechst plc 2
1.3 Statement of problems 4
1.4 Objective of study 5
1.5 Significance of study 5
1.6 Hypothesis and research questions 6
1.7 Scope and limitation of study 7
1.8 Definition of terms 8
CHAPTER TWO
REVIEW OF LITERATURE
2.1 Literature review 10
2.2 Theoretical framework of studies 18
2.3 Model development 24
2.4 Tools of management accounting 48
2.5 Classification of decision 49
CHAPTER THREE
RESEARCH DESIGN AND METHODOLOGY
3.1 Introduction
3.2 Research approach 51
3.3 Sampling design and population size 52
3.4 Source of data 53
3.5 Interview questions 54
3.6 Method of data analysis 54
CHAPTER-PRESENTATION, ANALYSIS AND INTERPRETATION OF DATA
4.1 Analysis of data and interpretation 58
4.2 Hypothesis testing and proofing 63
CHAPTER FIVE
SUMMARY OF FINDING, CONCLUSION AND RECOMMENDATION
5.1 Summary of findings 68
Conclusion
Recommendation
Bibliography
Appendix i
Appendix ii
CHAPTER ONE
INTRODUCTION
BACKGROUND OF STUDY
The success of a business is generally attributable in great measure of the ability of its management personal to cope with probable conditions of the future. Short range as well as long-term plans must be made accomplished through sound management evaluation. However, many aids have been controlling and co-ordinating the function of their business. One of the tool which encompasses vital and needed information in guiding companies profit path is the Break-Even theory. This is an extension of marginal costing; basically. It is concerned with the point at which revenue and costs intercedes, hence the term “Break – Even”.
Break-Even system is a simple and easily understandable method of picturing to the management the effect of changes in volume on profits. It predicts the effects of managerial actions today on future profits and company survival. Business people do not view costs outputs and profits may be affected by their actions. With the aid of Break-Even theory, they will be able to understand more and data revealed by the Break-Even analysis. This system involves the marshalling of the cost – volumer – profit data and other data to guide manager in its day-to-day decisions. Some of the data are best seen in a chart form for management to get a perspective view of the profit structure.
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