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CVP-ANALYSIS METHOD: THEORY AND PRACTICE

Автор: Sveta on .

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DOI:  http://doi.org/10.31617/visnik.knute.2019(124)05

UDC 658.155
 

BLAKYTA Hanna,
Doctor of Economics, Professor, Head of the Department of Economics and Business Finance
of the Kyiv National University of Trade and Economics,
19, Kyoto str., Kyiv, 02156, Ukraine

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ORCID: http://orcid.org/0000-0001-7843-7120
 
ADAMENKO Viktor,
Senior Lecturer at the Department of Economics and Business Finance
of the Kyiv National University of Trade and Economics,
19, Kyoto str., Kyiv, 02156, Ukraine

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ORCID: http://orcid.org/0000-0002-6908-6522
 

CVP-ANALYSIS METHOD: THEORY AND PRACTICE

Background. In the conditions of dynamic changes of internal and external environ­ments, transformation of business processes of the enterprise the actualization of planning methods becomes more and more important. Despite the widespread introduction of innovations capable of taking into account the uncertainty of a chan­ging environment, popularization of questionable outdated planning methods continues in scien­tific and educational literature, one of which is CVP-analysis.
The aim of the article is the argumentation of the theoretical groundlessness and inapplicability for the practical use of the CVP-analysis method.
Materials and methods.In the process of research the general scientific and spe­cial methods of cognition are applied: historical and abstract-logical; bibliographic, graphic, analysis and synthesis, induction and deduction, comparison, analogy, abstraction, systematic approach; regression analysis, as well as generalization method.
Results.The discrepancy of the basic assumptions of the CVP-analysis method with the recognized principles of the neoclassical theory of the firm and violation of the system approach to the operational activity of the enterprise due to the failure to take into account its financial aspects and riskswere revealed. It was analyzed and revealed inconsistency of CVP analysis techniques for the division of current costs of the enterprise into permanent and variable parts to the theory of regression analysis.
Conclusion.The CVP analysis method is not well documented and is unsuitable for practical use because it is based on false assumptions, contrary to statistical methodology and cannot guarantee the receipt of relevant results.

Keywords: operational activity, CVP-analysis, break-even point, mixed costs, regre­ssion analysis.
 

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