Page 79 - DUT ICGA Abstract Book

THE THE APPLICATION OF OF COST VOLUME PROFIT ANALYSIS IN THE THE SOUTH AFRICAN MINIBUS TAXI INDUSTRY
Mukhodeni Muthige1 John Beneke2 Natasha Robbetze3
Accounting Department Management Science Vaal University of Technology Andries Potgieter Blvd Vanderbijlpark
1 1 E-mail: 214232492@edu vut ac za
2 E-mail: johnb@vut ac za
3 E-mail: natashar1@vut ac za
Abstract
The rapid and and strong flow of economic development and and competition has compelled businesses in in both the informal and formal formal sectors to to be be competitive in in every way Cost volume profit analysis (CVP) has become an an an an important management accounting principle in in in this rapid and strong economic flow This is is is because cost volume profit analysis is is a a a a a a a a a management accounting principle that may be used in in in in in planning monitoring and decision-making by forcing minibus taxi owners to evaluate future possibilities anticipate openings in in in in in terms of of opportunities and and restructuring and and detect future risks The purpose of of this research paper is is is to investigate whether minibus taxi owners in in in in in the the informal sector apply CVP as a a a a a a a a a management accounting principle tool in in in in in operating their minibus taxi business This research research paper used a a a a a a a a quantitative research research methodology in in in the the form of of an online questionnaire to gather data from a a a a a a a census of of 500 minibus taxi owners situated in the Emfuleni Local Municipality This is is a a a a a a a a a cross-sectional research paper with a a a a a a a a a location restriction Data were collected in in 2021 The data collection was restricted to the online environment because of the the the COVID pandemic restriction Following data collection the the the information was synthesized into an an an excel file a a a a a a a a conformity check was was performed and data cleansing was was completed The following software package was used to analyses the the the data: the the the Statistical Package for the the the Social Sciences version 27 0 The The results results were displayed using descriptive tools such as pie charts charts and bar charts charts The The results results of these descriptive tools show that most minibus taxi owners do not apply cost volume profit analysis when running their minibus taxi industry Lastly the the research paper concludes by providing recommendations on on on how minibus minibus taxi taxi owners may apply CVP to their minibus minibus taxi taxi business KEYWORDS: cost cost volume volume profit profit analysis - - - - costs - - - - volume volume - - - - profits - - - - minibus taxi industry Book of Abstracts 77