An Appraisal of Usefulness of Break-even Analysis to Business Managers in Decision Making
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Date
2009
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ADSU Journal of Social and Development Studies, An Interdisciplinary Journal of Research, Policy and Development Studies
Abstract
The focus of study is an appraisal of usefulness of break-even analysis to business managers in decision making. The study relied on both qualitative and quantitative analysis of data. A total of 120 copies of the questionnaire were administered out of which 85 copies were however returned and fond suitable for analysis. The data obtained through questionnaire were analysed using descriptive statistics and inferential statistics such as frequency distribution and a strong and robust non-paramentric statistics called G-Test, respectively. The results of the analysis showed that Break-Even Analysis is useful to Business Managers in Decision Making. The recommendations based on the findings are breakeven analysis can be used not only for manufacturing companies, but also for companies that provide services; in using breakeven analysis in decision making all the information which is relevant must be available; and to effectively use break-even analysis in decision making all the data must be expressed in monetary value and relating to costs and revenues as measured by the management accountant.
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Keywords
Break-even Analysis, profitability, usefulness, manager, decision making
Citation
3(2); 9-19