My paper
Introduction
Today's economy is faced with challenges such as constantly increasing competition on world markets, more and stronger technological innovations, etc. Although certain changes that occur are the stimulus to economic activity, also, some movements on the market may become a threat. In fact, the current economic crisis as recession has covered all countries of the world, and the consequences that result are very critical. Lowering production and other economic activities are caused by a number of other events that adversely affect the economy, for example, reduced production, growth of fixed costs per unit, reducing the number of employees and increase of unemployment, decrease in exports and weakening domestic currency exchange rate and so on. It is really necessary to look at all the problems that exist in the process of doing business in crisis conditions. Some of these problems include reduced manufacturing activity, inability of collection of receivables, increase in energy costs, soaring energy prices, and the impossibility of product placement, inventory buildup and increase of the cost of supplies. Because of very difficult business conditions, and the risk of losses and possible bankruptcy, it is more and more common demand for maximum economy and rationality of spending resources, and achieving profitability. To complete these demands, one of the various quantitative methods which companies use is the Cost Volume Profit Analysis (CVP). Cost Volume Profit analysis is generally defined as a planning tool which can evaluate the effect of a change(s) in price, volume, variable cost or fixed cost on profit. In CVP analysis an attempt is made to measure the variations of cost and profit with volume. Profit as a variable is the reflection of a number of internal and external conditions which exert influence on sales revenue and costs. Accountants often perform CVP analysis to plan future levels of operating activity and provide
Today's economy is faced with challenges such as constantly increasing competition on world markets, more and stronger technological innovations, etc. Although certain changes that occur are the stimulus to economic activity, also, some movements on the market may become a threat. In fact, the current economic crisis as recession has covered all countries of the world, and the consequences that result are very critical. Lowering production and other economic activities are caused by a number of other events that adversely affect the economy, for example, reduced production, growth of fixed costs per unit, reducing the number of employees and increase of unemployment, decrease in exports and weakening domestic currency exchange rate and so on. It is really necessary to look at all the problems that exist in the process of doing business in crisis conditions. Some of these problems include reduced manufacturing activity, inability of collection of receivables, increase in energy costs, soaring energy prices, and the impossibility of product placement, inventory buildup and increase of the cost of supplies. Because of very difficult business conditions, and the risk of losses and possible bankruptcy, it is more and more common demand for maximum economy and rationality of spending resources, and achieving profitability. To complete these demands, one of the various quantitative methods which companies use is the Cost Volume Profit Analysis (CVP). Cost Volume Profit analysis is generally defined as a planning tool which can evaluate the effect of a change(s) in price, volume, variable cost or fixed cost on profit. In CVP analysis an attempt is made to measure the variations of cost and profit with volume. Profit as a variable is the reflection of a number of internal and external conditions which exert influence on sales revenue and costs. Accountants often perform CVP analysis to plan future levels of operating activity and provide