Evaluating Factors Influencing Cost Relationship Analysis

It is necessary to use office equipment and tools economically to avoid wasting them, use printing costs economically, and establish a suitable fluctuation range for expenses for receptions and meetings.

Provide professional training for staff, strengthen training policies for staff with good scientific and technical qualifications and the ability to access and master new equipment.

In addition, in the analysis of the cost-volume-profit relationship, it is assumed that inventory remains constant, the quantity consumed is equal to the quantity of products, although this assumption does not occur in reality, the company should have some specific measures to reduce the amount of inventory at the company such as reducing product prices, expanding installment sales methods, periodic mobile sales, organizing trips to bring goods to the suburbs, remote areas where people have a need to use but are limited in terms of traffic and communication, etc.

4.2 Evaluate factors affecting cost relationship analysis

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– volume – profit:

4.2.1 Evaluation of research results:

- Regarding the factor of understanding of international economics of the business owner/manager:

According to the research results, this is the most influential factor, it affects 0.335 on CVP analysis. In order for business owners to be interested in QA, it is necessary to create conditions for them to understand and recognize the importance of QA in general and the benefits of CVP analysis in particular to the existence of businesses in a fiercely competitive environment like today.

On the other hand, in the current situation of enterprises, all decisions made by business owners/managers are based on their own feelings or long-term working experience, not on any basis. In addition, employees in the enterprise cannot develop their professional capabilities. Therefore, if the business owner/manager understands international economics and can share work with employees, the owner/manager can reduce pressure and at the same time help employees develop their capabilities, making the relationship between the two sides more harmonious. In addition, it can help businesses have more development directions, not being constrained within a certain framework. In short, the factor of understanding international economics of

Business owners/operators must be given more attention and care so that cost-volume-profit relationship analysis can be applied more widely in businesses.

- For cost classification factors serving CVP analysis

According to the survey results, we see that the cost classification factor affects 0.290 on the analysis of the cost-volume-profit relationship. The original nature of management accounting is cost accounting, so the first thing to do when analyzing CVP is to organize the cost recording well, using cost techniques of management accounting to be able to identify and classify costs according to their behavior as soon as they arise for management purposes.

The classification of costs in small-scale enterprises is currently based solely on financial accounting, so it does not satisfy the information needs of management accounting. The accounting system has detailed classification but is not suitable for analyzing costs according to variable and fixed costs.

- For the business size factor:

The research results show that the factor of enterprise size affects 0.279 on CVP analysis. Although this factor does not affect CVP analysis much, the reality shows that large-scale enterprises often have a greater need for this tool analysis than small-scale enterprises. The larger the enterprise, the more employees and departments, the higher the job requirements, besides, accounting data also meets the information for analyzing the cost-volume relationship.

– profits are separated more clearly.

- For the high inventory issue factor:

According to the results of the regression model, the inventory affects 0.259 on CVP analysis. With the assumption that the number of products produced is equal to the number of products consumed in manufacturing enterprises, businesses with the need to analyze CVP are limited. However, this assumption is not reasonable in reality, businesses often reserve a lot, especially for businesses in the commercial sector. For example, at a time like Tet, holidays, raw materials increase in price, commercial or manufacturing enterprises often reserve a lot of goods, hoping to serve the maximum needs of consumers, on the other hand, can maximize profits. Besides, with the current economic situation, businesses always face the problem of having

Many competitors, those problems will reduce consumer purchasing power affecting the high inventory situation.

- For accounting staff level:

The results of the regression model show that this factor affects 0.252 on CVP analysis. Although this is the least influential factor, it is impossible to ignore this issue. Because if the accountant has a high level of qualifications as well as understanding of management accounting, the analysis of the cost-volume-profit relationship will be more effective. The higher the level of the staff, the easier it is to analyze costs and can come up with highly effective business strategies.

4.2.2 Related suggestions:

Regarding the research on factors affecting the analysis of the cost-volume-profit relationship, there are still many limitations in the research process and recommendations for further research directions:

+ Firstly, because the survey was only conducted in one area of Can Tho City, the survey subjects were limited and did not have high reliability, so the survey sample was expanded to many cities or regions such as the southern region, the northern region, etc. to make the survey and research subjects more diverse and run the model with higher reliability.

+ Second, the topic has not surveyed the subject of business owners/managers, so it has not deeply understood the needs and desires of business owners/managers in general about management accounting and about analyzing the relationship between cost - volume - profit. Therefore, when the scope of the survey is expanded and the owners/managers are directly surveyed, the research model will be more diverse and more reliable. Besides, it can help business owners/managers better understand the benefits of analyzing the relationship between cost - volume - profit.

+ Although the inventory problem is not a new problem, there are still not many studies on this issue, so data collection is still difficult. Therefore, it is necessary to expand many research directions for this problem and provide directions to help reduce the inventory problem, because this is a common essential problem as well as a concern of many businesses today.

+ In the model summary table, Adjusted R(Square) = 0.640 means that the independent variables in the research model affect 64% of the variation of the dependent variable. The remaining 36% is due to the influence of variables outside the model.

that the topic has not found and the influence of random error. Therefore, further studies should investigate some more influencing factors to contribute to perfecting the research model.

CHAPTER 5: DISCUSSION AND RECOMMENDATIONS

5.1 Conclusion:

Hau Giang Pharmaceutical Joint Stock Company, with a history of 43 years of establishment and development, has gone through many difficulties from the subsidized economy to the market economy and the current integrated economy. However, with a team of highly qualified and well-trained employees, the management ability of the leaders and the attention of the authorities at all levels, Hau Giang Pharmaceutical is one of the largest enterprises in the country, has maintained its reputation and market share in the domestic and international markets, and believes that in the future Hau Giang Pharmaceutical will continue to develop. In recent years, the pharmaceutical industry in general and Hau Giang Pharmaceutical Joint Stock Company in particular have always struggled to find a direction suitable to market demand. This is also considered a recovery period after a long period of suffering many fluctuations of the market economy.

The business activities of an enterprise are closely linked to the relationship between costs - revenue - profit. Understanding and applying this relationship well to make decisions for business activities is extremely important in improving operational efficiency.

Analyzing the relationship between cost - volume - profit is a necessary task for managers, through this we can see the relationship between three main factors that determine the success of each company. From the sales volume with the corresponding cost, the company will determine the profit earned. In order to make decisions to maximize profits, the first decisive issue is to control costs. To do so, each company needs to know its cost structure, know the advantages and disadvantages so that there are appropriate measures in controlling and operating costs to suit the company's operating situation. On the other hand, analyzing the cost-volume-profit relationship helps managers have a basis to make plans, decisions, and choose appropriate production and business strategies such as deciding how many products to produce and consume for the company to break even, how output affects revenue, costs, profits, how cutting costs will affect selling prices, output, profits, etc. All of the above decisions need the effective support of CVP analysis to exploit the company's potential, limit risks and improve production and business efficiency for the company.

5.2 Recommendations:

Through the internship period at the Company, being exposed to the actual situation and after analyzing and evaluating the company's operations, I would like to make some recommendations as follows:

- For companies:

The company can organize many community activities, through which it can help those in need and bring products closer to consumers.

The company can organize rewards for sales individuals who achieve sales targets to encourage employee morale and increase product sales for the company.

Improve professional management capacity for all employees, especially workers specializing in creating new product designs to increase diversity as well as improve labor productivity.

Create favorable conditions and a safe working environment for employees so that they can work with peace of mind, bringing the highest performance and long-term commitment to Hau Giang Pharmaceutical Joint Stock Company. Pay special attention to the salary and bonus policy for employees so that their income increases, stimulating them to maximize their abilities and dedicate themselves to the company.

Actively seek out sources of raw materials to increase the quantity purchased. At the same time, actively seek out and maintain regular relationships with old customers to increase sales and purchases to increase revenue for the company.

There needs to be coordination and unity among departments in their work for a common goal to contribute to improving business performance for the company to grow and develop more and more firmly in the market.

In particular, through the analysis of the cost-volume-product relationship at the company in terms of cost structure, it shows that the variable cost ratio is quite high, affecting business efficiency. The company should strengthen strict control and implement cost savings to increase profits and business efficiency.

- For the state:

The State should strengthen management of the pharmaceutical industry and have policies to encourage the development of the pharmaceutical industry. At the same time, the State needs to have policies to regulate the macro economy to help stabilize input costs for businesses.

Create a healthy competitive environment among domestic pharmaceutical businesses, avoid counterfeit and poor quality goods that affect people's health and the reputation of healthy businesses.

In the competitive market conditions, the important issue for each company is capital. Therefore, the State Bank needs to have credit support policies for companies to borrow capital to invest in upgrading machinery and equipment, purchasing modern production lines with preferential interest rates, supporting export enterprises and helping to overcome trade barriers of countries to facilitate product export.

- For local:

Create conditions for the pharmaceutical industry to develop locally.

Improve the road and bridge system to facilitate the transportation of pharmaceuticals locally.

Local environmental agencies organize to guide companies to properly implement requirements on environmental treatment and wastewater treatment to ensure no pollution.

Create favorable conditions for companies to organize many exchanges, exhibitions, fairs to promote and introduce products to domestic and foreign consumers.

REFERENCES

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1. Data collected at Hau Giang Pharmaceutical Joint Stock Company

2. Thai Thi Bich Tran. 2016. Teaching material "Management Accounting" 3. Pham Van Duoc. 2010. Management Accounting Part II, Dai Publishing House

Ho Chi Minh City University of Technology

4. Tran Ngoc Hung. 2016. Thesis "Factors affecting the application of management accounting in small and medium enterprises in Vietnam.

5. Ho Thi Hue. 2011. Master's thesis "Building management accounting in manufacturing enterprises in Ho Chi Minh City"

6. Dao Khanh Tri. 2015. Master's thesis "Factors affecting the application of management accounting for small and medium enterprises in Ho Chi Minh City"

7. Tran The Nu. 2013. Thesis "Building a cost management model in small and medium-sized commercial enterprises in Vietnam".

8. Hoang Trong – Chu Nguyen Mong Ngoc. 2008. Analyzing research data with SPSS. Hong Duc Publishing House

9. Nguyen Thi Giau. 2016. Thesis "Analysis of Cost - Volume - Profit relationship at Hau Giang Pharmaceutical Joint Stock Company"

10. Huynh Loi. 2012. Management accounting for students of economics. Phuong Dong Publishing House.

11. Nguyen Tan Binh. 2011. Management accounting. Statistical Publishing House 12. Phan Duc Dung. 2009. Management accounting. Statistical Publishing House 13. Doan Ngoc Que. 2011. Management accounting. Labor Publishing House

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