THE OPERATIONAL RISK AND THE APPLICATION OF THE COST-VOLUME-PROFIT MODEL

Maria-Daniela Bondoc and Mariana Banuta
Additional contact information
Mariana Banuta: University of Pitesti

Theoretical and Applied Economics, 2009, vol. 05(534)(supplement), issue 05(534)(supplement), 236-240

Abstract: One of the purposes of our paper is to provide a comprehensive survey of the operational risk, in order to understand the behaviour of costs and the impact of their structure on company's profits. In order to achieve the targeted profits or to analyze the operational risk, managers can use the Cost-Volume-Profit (CVP) model - one of the simplest, analytical tools. This paper presents the basic version of the CVP model as a first step in managers' strategic decisions. A noted application of CVP is in the breakeven analysis and the operating leverage.

Keywords: breakeven point; operational risk; costs structure; CVP analysis; operational leverage. (search for similar items in EconPapers)
Date: 2009
References: Add references at CitEc
Citations:

Downloads: (external link)
http://store.ectap.ro/suplimente/Simpozion-29-31.05.2009_en.pdf (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:agr:journl:v:05(534)(supplement):y:2009:i:05(534)(supplement):p:236-240

Access Statistics for this article

Theoretical and Applied Economics is currently edited by Mircea Dinu

More articles in Theoretical and Applied Economics from Asociatia Generala a Economistilor din Romania / Editura Economica Contact information at EDIRC.
Bibliographic data for series maintained by Mircea Dinu ().