THE EFFECTIVENESS OF COST VOLUME PROFIT ANALYSIS IN SUPPORTING BUSINESS DECISION-MAKING: A SYSTEMATIC LITERATURE REVIEW

Abstrak

Cost Volume Profit Analysis is a tool that businesses use to understand how costs sales volume and profit are connected. This analysis helps companies make decisions about pricing, cost control and profit planning. For businesses Cost Volume Profit Analysis is very helpful because it gives them a clear picture of how sales and costs affect profit. As business competition gets tougher and market conditions change quickly managers need tools that're practical and relevant to their business. That’s why many recent studies discuss the usefulness of Cost Volume Profit Analysis. This study looks at how effective Cost Volume Profit Analysiss in supporting business decision-making. We did a Systematic Literature Review to find out. We selected 22 studies from 2022 to 2026. Found that Cost Volume Profit Analysis is still useful for businesses. It helps managers estimate sales targets evaluate pricing strategies and identify business risks. However some studies also mention that Cost Volume Profit Analysis has limitations especially because it assumes that costs and sales are stable which is not always true. The findings show that Cost Volume Profit Analysis is still a tool for businesses. It helps them make operational decisions. Through Cost Volume Profit Analysis managers can estimate sales targets evaluate pricing strategies and identify business risks before making decisions. With its limitations Cost Volume Profit Analysis is still seen as a practical tool for profit planning and business evaluation when supported by accurate financial data and realistic assumptions.