The Effect of Cost’s on Profitability an Analysis on Small Manufacturing Businesses
Journal Title: International Journal of Business and Management Invention - Year 2018, Vol 7, Issue 9
Abstract
Costing is a major issue or concern for every company. It is very difficult to determine cost as there are different classifications of cost items. Cost of one company varies from cost item of another company. That is why, the profitability issues also depends on company’s accounting system and their process of cost identification. Some cost item has large impact on profitability. So, it is a challenge for the company to determine their most important cost items that controls profitability of the company. In this research paper, I have tried to identify some important cost items of small manufacturing company along with their correlation. For identifying the most important factors I have conducted factor analysis and multiple regression analysis for determining the relationships among the variables. I have suggested conducting further research on medium and large company and proposing generalized factors that have impact on profitability. This research would be more successful if the small manufacturing businesses have structured accounting system. I am hoping to conduct a further research about cost and profitability by using actual costing data instead of using categorical data. Hopefully that will serve the ultimate purpose.
Authors and Affiliations
Arif Ahsan
Keywords
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