The Problems And Solutions Of The Application Of CVP Analysis Tools In Publishing Enterprises

The rapid developments of China's economy drive enterprises enhance their own business management level to make more profits under the market economy system,and this trend corresponds with the effect of the Ministry of Finance promoting management accounting.Cost-Volume-Profit analysis(i.e.CVP analysis)is an essential management accounting tools,which is originated in 20 th century's western country,and it is proved to be very practical when put into more use in the favorable domestic environment in these years.The publishing industry is facing a more and more open market,so pursuing the economic interest and integrating to the market are inevitable.But it is not very desirable that the CVP analysis application in the publishing industry.The basic application of CVP tools is to analyze the break-even state when total revenue equals the total costs,and the accuracy of cost estimation impacts the analysis result of break-even point(BEP)and safety margin.The author holds that if the cost estimation is inaccurate,then it would lead to the wrong analysis of BEP and safety margin and even the wrong business decision.Aiming at the three WS Press' management problems as the unclear cost classification,the lag of cost accounting,and the inaccurate cost estimation,this thesis not only did the linearregression analysis through analyzing the relationship of three driving factors(ma yang,sales volume and net sales revenue)with total costs of the recent 2 years,but also made accuracy estimate using actual data to obtain the suitable cost driver(ma yang),and using ma yang to set up the cost estimation formula and CVP analysis.Based upon this,it made the BEP analysis,target profit analysis and safety margin analysis to provide management recommendations on whether the management's business decisions are safe and effective.Most of publishing enterprises often use sales volume as the object in CVP analysis.Through this thesis study,the author hopes to further extend the CVP analysis using ma yang as the object to the whole publishing industry and to make more and more publishing enterprises pay more attention to the data of ma yang,moreover,to use flexibly into the real business activities.