margin and break even point provides information on the companys operational

Margin and break even point provides information on

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margin and break-even point provides information on the company's operational efficiency. These two measurements provide the Company with the information of pricing. Once we a product is generating profit or making losses, we can begin to analyze and adjust prices accordingly. The Company applied the Resource Based View (“RBV”) theory as a guideline to be competitive advantage. Based on RBV proponents, it is much more feasible to exploit external opportunities using existing resources such as cement in a new way rather than trying to acquire new skills for each different opportunity. In RBV model, resources are given the major role in helping companies to achieve higher organizational performance in cement industries. Additionally, RBV can be sustained over longer time periods to the extent our company to be able to protect against resource imitation, transfer or substitution .
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Page 2 of 2 1.1 OBJECTIVE The objective of this report is to seek Executive Committee’s endorsement concerning the analysis of cost behavior and the impact of varying level of cost and volume toward the operating profit of CMS Cement Industries Sdn. Bhd. (“CMS Cement” or the “Company”). 1.2 RECOMMENDATION From our findings, the following are rationales for our recommendation: - i) Break-even analysis is a technique used for evaluating company’s performance. It dwells into finding the point in Ringgit and units at which cost equals revenue.
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  • Fall '16
  • Hamid
  • Management occupations, Executive officer, CMS Cement

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