Exploring the Applicability of the CVP Model in the Indian Cement Sector | Asian Journal of Pure and

The Cost-Volume-Profit (CVP) model is a basic model for examining a firm's cost and revenue structure, as well as a very adaptable tool for profit planning. It is extensively used in practise to analyse the potential consequences of a variety of strategic decisions. Despite its many expansions and theoretical attractiveness, the CVP model has received very little empirical testing. Using linear and quadratic regression, the current study investigates the applicability of the CVP model for the Indian cement industry. The study's findings show that, while the simple CVP model with linear cost and revenue functions provides some useful insights, the CVP model with quadratic cost and revenue functions is better for understanding the cost and revenue structure of businesses in general.

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