ABSTRACT
One of the most important objectives for a firm dealing in manufacturing is to obtain and accumulate profits, other company objectives being an increase of market share, return on capital, growth rate, social contribution and so on. An individual company establishes the management policy and determines the long-range business planning as strategic decision-making activities. In this stage profit planning is done by estimating and calculating the sales volume and the cost, product by product, department by department, thereby attaining the profits for the future. After the profit is obtained post factum or the anticipated profit is preset, the relationship among the profit, the sales and the cost is to be clarified in order to ensure the target is achieved. Cost-volume-profit (CVP) analysis or break-even analysis is effectively used for this purpose. The profit minus tax is the net revenue which is allotted to stock dividend, labour share, and internal reserve.
