Abstract:
This research explores the role of cost-volume-profit (CVP) analysis in decision-making in Lagos State, Nigeria. The objectives are to: (1) assess how CVP analysis influences pricing and production decisions, (2) evaluate its impact on profitability and break-even analysis, and (3) analyze the challenges of implementing CVP analysis in businesses. A survey design was employed to collect data from financial managers and accountants. The sample size, determined using Taro Yamane's formula, ensures representativeness. Flour Mills of Nigeria Plc was chosen as the case study due to its use of CVP analysis in decision-making. The reliability coefficient score of the survey was 0.88. Findings reveal that CVP analysis significantly enhances pricing and production decisions, improving profitability and break-even analysis. However, implementation challenges such as data accuracy and integration were identified. It is recommended that companies in Lagos State adopt CVP analysis practices to improve decision-making and profitability.
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