Nghiên cứu phân tích mối quan hệ chi phí khối lượng lợi nhuận trong việc ra quyết định kinh doanh tại các doanh nghiệp chế biến thức ăn chăn nuôi ở việt nam TT TIENG ANH

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INTRODUCTION

consumption plan when the elements of the business process business changes,…
Therefore, animal feed processing enterprises need to have an appropriate information
system to help managers make accurate and timely decisions. With the industry's
characteristic being a simple production process, the main cost is the direct cost related to
each processing batch, the general cost allocation is usually by volume, so the application
of CVP analysis to serve management decision making is essential.
Moreover, through the preliminary survey process, the author found that the
application of CVP analysis in animal feed processing Vietnam enterprises still has many
obstacles and is not thorough, so exploiting the usefulness of information provided by
CVP analysis is still very difficult, grants for business decision-making are limited. The
application of CVP analysis in animal feed processing enterprises in Vietnam is
influenced by many factors inside and outside the enterprise, which can increase the
applying intention and the feasibility of applying CVP analysis in other industries in
animal feed processing enterprises in Vietnam or vice versa. From the above reasons, the
author realizes that there is a need for in-depth research on CVP analysis in business
decision making as well as research on factors affecting the application of CVP analysis
in food processing enterprises in Vietnam. Therefore, in that context, the thesis topic:
"Researching cost - volume - profit analysis for business decision making of animal feed
processing enterprises in Vietnam" Accordingly, the author delves into the analysis of
CVP in business decision making both in terms of actual application status and factors
affecting the application of CVP analysis.
2. Research objectives
Researching the theoretical basis of CVP analysis and the actual situation of
applying CVP relationship analysis in business decision making, at the same time,
researching the factors affecting the application of CVP analysis in business decisions

making. From there, recommendations are made to enhance the application of CVP
analysis in making business decisions at animal feed processing enterprises in Vietnam.
Specific aims include:
- Systematize and clarify the theoretical basis of CVP analysis
- Researching the application status off CVP analysis in business decision making
in aminal feed processing enterprises in Vietnam.
- Researching the factors affecting the application of CVP analysis in making
business decisions in aminal feed processing enterprises in Vietnam.
- Recommendation of strengthen the application of CVP analysis in business
decisions making in aminal feed processing enterprises in Vietnam.
3. Research questions
(1) What does CVP analysis mean in business decision making?
(2) What is the application status of CVP analysis in aminal feed processing
enterprises in Vietnam?

1. Rationale of the thesis topic
To increase the competitiveness in enterprises in general, and in manufacturing
industry in particular, managers need to use a variety off management accounting tools.
In which, cost – volume – profit analysis (CVP) is a tool to help manager to make
optimal business decision (Fong-Ching Yuan, 2009), in order to achieve the highest aim
in finance operation that is business value maximization. CVP analysis deals with the
basic economic relationship that shows the relevance of fixed costs, variable costs, sales
volume, unit price, revenue, profit. Through studying and mastering the CVP
relationship, managers can maximize the potential capabilities of the enterprise, use and
promote effectively all resources in the enterprise to perform well. manufacturing
business. This is the basis for making decisions on selecting or adjusting production and
business methods... in order to maximize profits.
According to the International Federation of Accountants (IFAC), CVP analysis is
in the second development stage of management accounting, belonging to traditional
management accounting and still commonly be used in many countries (Abdel-Kader and

Luther, 2006; Uyar, 2010; Yalcin, 2012). Analysis of costs, revenues and profits are basic
objects that are always concerned by managers at all times. Therefore, CVP analysis is
used throughout to provide appropriate information in business stages, contribute to
management accounting information systems and evaluate business performance
(Horngren, 2011). However, applying CVP analysis in making business decisions in each
manufacturing enterprise is different because of the characteristics of the business
(industry, organizational structure, competitive capacity, ...) and perception of the
managers about the importance of using accounting information.
To develop the livestock industry, feed is an important link that is being
considered as a solution to ensure food security around the world. According to experts
from Grand View Research, by 2020, Vietnam's animal feed market will reach a size of
about 10.55 billion USD. The demand of the market can then increase from 25 to 26
million tons of feed, so in recent years this industry is growing and developing stably
with the growth rate of 13 to 15% per year. However, according to the Department of
Livestock Production of Vietnam, the current domestic animal feed production activities
almost do not meet the domestic demand but are still mainly imported sources. That
shows that the animal feed market in Vietnam is a potential market for feed processing
enterprises of this industry. Besides the opportunities for feed production enterprises, the
challenges posed in the business activities of this industry are not small. Because, the
competitive pressure of the industry is quite high, requiring businesses to always have to
make business decisions such as determining the selling price, choosing the optimal


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(3) How are the factors affecting the application of CVP analysis in business
decisions making in aminal feed processing enterprises in Vietnam?
(4) What solutions are needed to enhance the application of CVP relationship

analysis in making business decisions in aminal feed processing enterprises in Vietnam.
4. Research objects and scope
Research objects:
- Literature review CVP analysis and factors affecting the application of CVP analysis.
- Theoretical basis of CVP analysis in manufacturing enterprises and the underlying
theory related to the factor model affecting the application of CVP analysis.
- Application status of CVP analysis in business decisions making in aminal feed
processing enterprises in Vietnam.
- Factors affecting the application of CVP analysis in business decisions making in
aminal feed processing enterprises in Vietnam.
Research scope:
About the research content:
The thesis researches CVP analyses to provide information for business decision
making of animal feed processing enterprises in Vietnam on the following specific
contents: (1) literature review of CVP analysis and influencing factors to CVP analysis
application; (2) synthesize and systematize the theoretical issues of CVP analysis in
business decision making and the underlying theory related to the influencing factor
model; (3) evaluate and interpret previous research results, evaluate the current situation
of applying CVP analysis in making business decisions at animal feed processing
enterprises in Vietnam, evaluate the influence of factors on applying CVP analysis; (4)
making research hypotheses and testing research hypotheses on the context of food
processing enterprises, and at the same time making recommendations to relevant
stakeholders
About the spatial extent:
Thesis selects aminal feed processing enterprises in Vietnam in the northern,
middle and southern provinces.
About time scope:
Thesis uses data of aminal feed processing enterprises in Vietnam from 2017 to
2019
5. Research methodology

The thesis uses both qualitative and quantitative research methods.
Qualitative research was carried out including interviews and case studies.
Quantitative research was carried out through distribution of questionnaires to
collect data in two phases. Phase one is a pilot study (trial survey) and phase two
is a large-scale mass study
6. Thesis structure

In addition to the introduction, the thesis consists of five chapters as follows:
Chapter 1. Literature review
Chapter 2: Theoretical basis of CVP analysis
Chapter 3. Research methodology
Chapter 4. Research results
Chapter 5. Discussion and recommendations
In addition, the thesis also includes diagrams, tables and attached appendices
7. New thesis contributions
Through the research, the author has some new theoretical and practical
contributions for management accounting aspect, as follow:
(1) The thesis is a pioneering research on applying CVP analysis in business
decision making at animal feed processing enterprises in Vietnam.
(2) On the basis of the unified theory of acceptance and use of technology
UTAUT and the theory of technology acceptance TAM, the thesis evaluates the impact
of factors affecting the applycation intention and behavior of using the CVP analysis in
business decision making at animal feed processing enterprises in Vietnam, factors
include: perceived usefulness, perceived ease of use, social influence and facilitating
conditions to apply.


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CHAPTER 1
LITERATURE REVIEW
1.1. Overview of cost – volume – profit analysis
1.1.1 Overview of cost – volume – profit analysis in business decision making
The first CVP analysis model was studied by Hess (1903). Four years later, Mann
has developed Hess' CVP model into a new model that can be applied to many products
and under changing business conditions. Charnes, Cooper, & Ijiri (1963) also
demonstrated that CVP analysis under uncertain conditions is non-existent in business
environment. Jaedicke & Robichek (1964) were the first to study the CVP model under
changing business conditions by treating profit as a random variable in two different
format models. This study overcomes the weaknesses in the study of Charnes, Cooper, &
Ijiri (1963).
Stefan Daniel (2012) developed CVP analysis in a multi-product environment. The
main objective of this study is to explain how analytics can be rationally used in
decision-making regarding the manufacturing process. Farrell and Virginia (2015) had
suggested that CVP analysis is based on a set of underlying assumptions. Assumptions
are fixed within the volume of output, including: total fixed cost, unit selling price, unit
variable cost, and contribution margin. The indicators of cost, output and consumption
structure, and selling price are studied separately in the works of Flora Guidry et al.
(1998), Neil Kokemuller (2013), Hansen, Mowen (2006), Walther, Skousen (2009), Kee,
Robert (2007), author group Jormakka, Koivusalo, Lappalainen, Niskanen, (2015)…
1.1.2. Overview of cost – volume – profit analysis application in enterprises
Kee (2007) evaluate of the risk-reward trade-off in a given product mix can be
made by using CVP analysis. In Viitala's study (2013), the author believes that successful
selling price determination is the foundation of business profits. This is one of the most
important decisions of a business, directly affecting sales and profits. According to
Hinterhuber (2003), a survey has been conducted on 150 companies in the metal
mechanics sector located in the Northeast region of the State of Rio Grande. Research
results have shown that CVP relationship analysis is a useful tool when making

decisions. Research by Huda Al-Hussari (2006) has studied the price indicator in the
analysis of the CVP relationship. Research results show that when using cost-based
pricing, variable cost information is used more by managers because using complete cost
information can lead to costly mistakes. . Mustafa Z. Younis et al. (2011) applied CVP
relationship analysis to calculate the expected benefits of health services, specifically
cardiovascular catheterization services in Palestine. This study looks at cardiac
catheterization unit costs at one of the largest hospitals in Palestine
Nguyen Thi Ngoc Lan (2012), Ho My Hanh (2013), Dao Thuy Ha (2015) also
mentioned CVP analysis in the thesis from the perspective of a small problem in the
research content. For the animal feed processing industry, many researchers are

interested and studied from different angles. Tran Thi Du (2013) has conducted research
in Vietnamese animal feed processing enterprises on cost content to strengthen cost
management accounting. Hoang Khanh Van (2017) researched on product pricing in
animal feed processing enterprises in Vietnam.
1.2. Overview of factors affecting cost – volume – profit analysis application
CVP analysis is a fundamental tool of traditional management accounting.
Therefore, on the basis of an overview of research works on factors affecting the
application of management accounting, the author has inherited and built Building a
factor analysis model that affects the application of CVP analysis.
Haldma and Laats (2002) study the factors affecting the application of management
accounting in manufacturing enterprises in Estonia. The research results show that,
traditional management accounting techniques (including CVP analysis) are widely
applied, the factors of awareness and capacity of accountants have the highest influence
on the growth of employees. Strengthen the application of management accounting
(mean = 4.25). Cades & Guilding (2008), Kosaiyakanont (2011), Ahmad K. (2012), Albu
(2012) study the factors affecting the application of CVP analysis including managers'
knowledge, awareness of accountants, level of accounting, organizational structure,
competitive pressure
Doan Ngoc Phi Anh (2012), Nguyen Phong Nguyen and Doan Ngoc Que (2016),

Tran Ngoc Hung (2016), Dao Thuy Ha (2017), Thai Anh Tuan (2019) study the factors
affecting the application of management accounting, including CVP analysis, points out
influencing factors including awareness of managers, awareness of accountants,
decentralization, application of information technology, organizational structure,
strategy. Nguyen Thi Ngoc Oanh (2016), Nguyen Quoc Hung and Le Thi Tu Oanh
(2020), Cao Thi Huyen Trang and Nguyen Thi Thuy (2018) analyze factors affecting the
application of management accounting on the basis of TAM, TPB, TRA, UTAUT.
Research gaps
Internal and external researches were systematical by content, including: CVP
analysis for business decision making; applying CVP analysis in enterprises with
different respects; factors affecting the application of management accounting including
CVP analysis, to provide useful and reliable information for the decision making process
of enterprises.
Firstly, from the overview of CVP analysis and application of CVP analysis, the
authors have developed a CVP analysis model from simple to extensive, from within a
single product business environment to a large business environment. multi-product
business school. The criteria of cost, selling price, output, and profit in the CVP are
mentioned separately in each project. The application of CVP analysis is also studied in
foreign and domestic enterprises, with diverse business lines such as transportation,
hospitals, restaurants, hotels, food industry, garment, manufacturing, etc. plastic


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production, etc. However, the authors have not gone into depth to analyze the overall
criteria in the CVP relationship, this issue has only been mentioned as a relevant content
in the research works in the field of plastic production. water. Especially in the animal
feed processing industry, previous studies only mentioned costs or selling prices, but did

not mention the overall relationship between the criteria in the CVP relationship. It can
be seen that there has not been any research on analyzing CVP and applying CVP
analysis in amimal feed processing enterprises.
Secondly, from the overview of factors affecting the application of management
accounting, the author finds that some influencing factors are mentioned in the
theoretical model technology TAM and the unified theory of acceptance and use of
technology UTAUT, are two models of factor analysis affecting the intention and the
behavior of application in the fields of economics and technology. These factors are:
awareness of managers, perception of accountants, perception of ease of use, perception
of trust, corporate characteristics, corporate culture, management hierarchy,
organizational structure, social environment, competitive pressure. From the review, the
author found that there has not been any research applying the theoretical model of TAM
and UTAUT to study the factors affecting the application of CVP analysis. Therefore, the
author thinks that it is possible to inherit factors and synthesize them into groups
according to TAM and UTAUT theory as follows: (1) perceived of usefulness
(perception of managers, perception of accountants) ), (2) perceived ease of use (effort
expectations), (3) facilitating conditions (information technology, organizational
structure), (4) social influence (perceived credibility , subjective norm). This is the basis
to build a model of factors affecting the application of CVP analysis in business decision
making in enterprises.
Từ hai kết luận tổng quan ở trên, tác giả đã tìm thấy khoảng trống nghiên cứu cho
đề tài của mình là nghiên cứu vận dụng phân tích CVP trong việc ra quyết định kinh
doanh tại các doanh nghiệp CBTACN ở Việt Nam, đồng thời tác giả kế thừa các nhân tố
ảnh hưởng trong mơ hình lý thuyết TAM và UTAUT để nghiên cứu các nhân tố ảnh
hưởng đến vận dụng phân tích CVP tại các doanh nghiệp CBTACN ở Việt Nam.
From two general conclusions, the author has found a research gap for the thesis,
These are reaearching CVP analysis application in business decision making at animal
feed processing enterprises in Vietnam, and at the same time the author inherits the
influencing factors in the theoretical model of TAM and UTAUT to research the factors
affecting the application of CVP analysis in animal feed processing enterprises in

Vietnam.

Sub-conclusion of chapter 1
In chapter 1, the author presented an overview of researching CVP analysis. These
works are divided into two groups: The first group includes studying CVP analysis
model, indicators in CVP relationship, CVP analysis in short-term decision making. The
second group includes researching CVP analysis application in decision making in
different industries such as steel production, food processing, food service, medical
services, garment, transportation. … in the world and in Vietnam. Besides, CVP analysis
is a technique of management accounting, so in order to build a model of factors
affecting the application of CVP analysis, the author conducts an overview of research
studies on factors affecting business performance.management accounting, in which it is
noteworthy that the influential factor analysis works according to the theory of
technology acceptance TAM and the unified theory of acceptance and use of technology
UTAUT. Up to now, there haven’t been any studie on the application of CVP analysis at
animal feed enterprises in Vietnam, and there are no studies on factors affecting the
application of CVP analysis.
CHAPTER 2:
THEORETICAL BASIS OF COST – VOLUME – PROFIT ANALYSIS
2.1. Basic content of cost – volume – profit analysis (CVP)
2.1.1. Concept, meaning, role of CVP analysis
Concept of CVP analysis
CVP analysis is an analysis that allows to evaluate the internal fluctuations and optimal
relationships between product selling prices, total fixed costs, variable costs per unit, and
cost structure. , quantity of production and structure of products consumed, as well as the
impact of such changes on business results of enterprises.
The significance of CVP analysis in enterprises management
CVP analysis has an important meaning in providing information for business
administrators to make decisions relating to business and production activities of enterprises,
it also provides multidimensional and accurate information about any changes in the

business process.
2.1.2. Indicators in cost-volume-profit relationship


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Cost: In the CVP relationship, costs are seen in terms of variable costs and fixed costs
(Walther, Skousen, 2009).
Selling volume: CVP analysis in decision making will be the basis for enterprises to
determine the level of consumption volume as well as the structure of selling volume so that
the enterprise can achieve maximum profit.
Selling Price: The price decision is not just a marketing process decision or a financial
decision, it is a decision that affects all activities in the business. The price of a product
determines the volume of that product that will be sold and affects the net income stream of
the business.
Profit: From the point of view of management accounting, the target of contributed
profit and the percentage of contributed profit are meaningful indicators in analyzing the
CVP relationship.
Operating Leverage: Operating leverage is the use of fixed costs in the hope of
increasing earnings before interest and taxes (EBIT) or the economic return on assets (ROA).
In other words, this is a way of using business fixed costs of enterprises in production and
business activities with the expectation of increasing EBIT or ROA.
CVP analytical relationship
- The relationship between cost - output
- The relationship between selling volume - profit
- The relationship between selling price - profit
2.2. Cost-volume-profit analysis in business decision making
2.2.1. Overview of business decisions

From the point of view of management accounting, a decision is a choice from a
variety of specific alternatives.
2.2.2. Content of cost-volume-profit analysis in business decision making
2.2.2.1. CVP analysis provides information in pre-business decision making
Breakeven analysis
- Breakeven analysis in single production enterprises
Breakeven output
Breakeven revenue
Breakeven time
- Breakeven analysis in multiple production enterprises
When analyzing the break-even point for a multi-product business, it is determined on
the average contributed profit and the average contributed profit ratio. (Stefan Daneil, 2012).
From break-even analysis, managers have grounds to make decisions to determine output
and selling price to achieve target profit.
Target profit analysis
Profit plan expressed in terms of total profit or profit-to-sales ratio. The target profit
analysis will help managers choose the optimal business plans.

2.2.2.2. CVP analysis provides information in decision making in business processes
For single-product enterprise
Choose a business plan when the unit variable cost and volume of consumption change
Choose a business plan when total fixed costs and sales volume change
Choosing a business plan when the selling price and volume of consumption change
For multi-product enterprise
Essentially, the CVP analysis in a multi-product enterprise is similar to that of a singleproduct enterprise.
2.2.2.3. CVP analysis provides information in decision making after the business process is
over
- Price sensitivity analysis
- Sensitivity analysis on variable costs
- Sensitivity analysis on fixed costs

2.3. The fundamental theory of factors affecting the application of CVP analysis in
business decision making
TAM describes the causal relationship between the “perceived usefulness” and the
“perceived ease of use” of technology and attitudes of users, using that technology or
technique (Davis, 1989). The TAM model is widely used to assess the acceptance of
information by users, to explain user behavior through assessing the impact of information
on users in terms of trust, attitude degree and intention
UTAUT proposes 4 core factors that directly affect behavioral attitudes, namely
“Performance Expectancy”, “Effort Expectancy”, “Social Influence” and “Facilitating
Conditions” – which are directly affects the intention the behavior to use (Vankatesh et al.,
2003). The theory assumes that the influence of factors is moderated by gender, age,
experience, the latter model has omitted the influence of the ready-to-use variable.
Sub-conclusion of chapter 2
In chapter 2, the author presented the main contents:
Theoretical foundations of CVP analysis include: an introduction to CVP analysis and
the meaning of CVP analysis; cost, volume, profit relationship; business decision overview;
content of CVP analysis in the period before, during and after the business process in singleproduct and multi-product enterprises, the content includes break-even analysis, target profit
analysis, selection choose a business plan when the factors of cost, volume, and selling price
change; Sensitivity analysis on costs and selling prices. From there, the thesis answers the
first research question.
Introduce the theory of technology acceptance TAM (Davis, 1989) and the unified
theory of technology acceptance and use UTAUT (Vankatesh, 2003), inheriting the
influencing factors that have been tested in the two models. to determine the factors affecting


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the application of CVP analysis in making business decisions in manufacturing enterprises.

The factors affecting application behavior and acceptance of application in the model
inherited by the author include: Perceived usefulness, Perceived usefulness; Social influence;
Facilitating condition.

CHAPTER 3 RESEARCH METHODOLGY
3.1. Research design
Define research problem

Literature review – Research gaps

Theoretical Basic

Research Methodology

Quantitative research:
- Cronbach Alpha
- EFA
- CFA
- SEM structure model

Qualities research:
- Interview
- Case study

Application status and affecting fators
Discussion and Recommendation

3.2. Proposing research model and hypotheses

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Perceived
usefullness
CVP
analysis
application
intention

Perceived ease
of use
Social influence

CVP
analysis
application

Facilitating
conditions

Accounting
Features

Manager
Features

Enterprises
Features

Hypotheses:
H1: Perceived usefulness of CVP analysis has positive effect to CVP analysis
application intention in business decision making.
H2: Perceived ease of use of CVP analysis has positive effect to CVP analysis
application intention in business decision making.
H3: Social influence of CVP analysis has positive effect to CVP analysis application
intention in business decision making.
H4: Facilitating conditions has positive effect to CVP analysis application in business
decision making.
H5: CVP analysis application intention has positive effect to CVP analysis application
in business decision making.
3.3. Research method
3.3.1. Qualitative research
The author carried out qualitative research including: in-depth interviews with semistructured and unstructured questions, from which the author initially built a research model.
The author surveyed 4 animal feed enterprises in Vietnam, namely Viet Long Joint Stock
Company, VIC Trading Company Limited, Central Feed Joint Stock Company, and Hasco
Feed Joint Stock Company. In which, Central Feed Joint Stock Company and Hasco Feed
Joint Stock Company represent the large-scale enterprises, Viet Long Joint Stock Company
and VIC Trading Company Limited represent the small and medium scale enterprises
3.3.2. Qualitative research
Determine the research sample
To ensure a representative sample but a high response rate, the author applies stratified
random sampling according to the following formula:
Nt2 x pq
n=
Nε2 + t2 x pq

218 x 1,962 x 0,1875
n=

= 88 enterprises

218 x 0,072 + 1,962 x 0,1875

Design the survey
- Scale development
- Test survey
- Official survey
Data collection methods
Step 1: Prepare the survey form for test survey
Step 2: Complete the official survey form
Scale development
The scales of quantitative research are built on the basis of using the scales of
previous studies.
Step 3: Formal survey (issue questionnaire to collect information)
Step 4: Receive the survey form and update information
Data were updated into SPSS 20 and AMOS 20 software.
Step 5: Clean data
The cleaned data is used to analyze and test the research hypotheses using SPSS 20 and
AMOS 20 software.
Data analysis (methods of analysis and testing of hypotheses)
The cleaned data will be entered into SPSS 20 software as a database for descriptive
statistics, reliability assessment of the scale and factor discovery analysis. After that, AMOS
20 software was used for confirmatory factor analysis and SEM structural model analysis to
get the best results for the research model of factor analysis affecting the application of CVP
relationship analysis in the field of analysis. business decision making, including:
Descriptive statistics; Check the reliability of the scale; Exploratory Factor Analysis (EFA);
Confirmatory factor analysis (CFA); SEM structural model analysis.

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Sub-conclusion of chapter 3

CHAPTER 4
RESEARCH RESULTS

In chapter 3, the author introduced the research methods, specifically: Based on the
theoretical basis and the research has been done to build research models and research
hypotheses; Design research methods including qualitative and quantitative research to
deploy the proposed model. Qualitative research method is carried out to collect initial
information as a premise to determine the variables in the research model and the
relationship between the variables in the model. At the same time, learn and survey about
applying CVP analysis in decision making at food processing enterprises in Vietnam.
Quantitative research methods are used to test the research hypotheses and measure the
influencing factors in the model. The survey questionnaire was sent to 100 feed processing
enterprises in Vietnam with 280 votes, after cleaning, 250 votes were obtained that can be
used. The test results will show which factors have a positive and negative influence on the
intention to apply and apply CVP analysis in making business decisions. The combination of
qualitative research methods and quantitative research methods makes the research design
achieve the research objectives of the topic.

4.1 Overview of animal feed processing enterprises in Vietnam
4.1.1. Introduction of animal feed processing activities in Vietnam
The animal feed processing industry in Vietnam was born and developed along with
the Vietnamese livestock industry. Since the renovation period of the 90s, the food
processing industry has experienced strong development.

Animal feed includes industrial feed and homemade feed. Industrial feed contributes
to the creation of high-quality products, is an important condition for the absorption of
imported livestock breeds and modern livestock production processes in the direction of
industrialization.
4.1.2 Product characteristics and product manufacturing processes at feed processing
enterprises in Vietnam
Characteristics of animal feed products
Animal feed, also known as bran, is divided into many types and divided according to
the type of food for groups of animals such as feed for pigs: piglets, porkers, sows... chicken
feed, swan food, etc. duck, feed for cows... If divided by feed line, there is mixed feed and
concentrated feed.
Production process of animal feed products
Technological features of mass production of feed. The feed production process is a
continuous and closed production process. The product production process does not have to
go through many complicated stages, the time for a short production process is 60
minutes/batch for concentrated feed, 90 minutes/batch for mixed feed. Products are
manufactured in batches. Each batch produces only one type of product.
4.1.3 Characteristics of management organization and accounting organization in animal
feed production enterprises in Vietnam
Statistical results from the research sample show that, at present, livestock feed
production enterprises in Vietnam are organized and managed according to three models:
simple divisional structure, functional division structure, and organizational structure.
strategic unit structure.
4.1.4. Characteristics of animal feed processing enterprises affecting the application of
CVP analysis in decision making
Characteristics of the type of business
Characteristics of labor
4.2. Situation CVP analysis in animal feed processing enterprises in Vietnam
4.2.1. Statistics of research samples
At the end of the survey period from February 2018 to August 2019, the number of

questionnaires sent was 280 votes, and 256 votes were collected, corresponding to a response


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rate of 89.5%, this rate can be considered is quite high, showing that the number of questions
generated and the level of response to the question are relatively appropriate. After
eliminating the number of invalid answer sheets, the remaining valid votes are 250 votes,
including 117 votes from the Administrator and 133 from the accountant.
4.2.2. The system of CVP analysis criteria at CBTACN enterprises
4.2.2.1. Cost
According to the survey results of the author, the proportion of enterprises that
classify costs into variable costs, fixed costs and mixed costs is 26.15% for small and
medium-sized enterprises, 92 % of large-scale enterprises. The fact that businesses
categorize costs into variable and fixed costs will make it possible for businesses to perform
CVP analysis. Enterprises often buy input materials for processing a few months in advance.
The choice of time and supplier is very important affecting the input cost and the cost of the
product. Therefore, most feed processing enterprises in Vietnam analyze cost fluctuations,
mainly variable costs.
4.2.2.2. Selling price
Selling price of animal feed processing enterprises is built based on cost estimates
divided by variable form and target profit.
4.2.2.3. Selling volume
According to the survey results, most enterprises conduct analysis of product
structure and analyze the fluctuation of product structure affecting profits and break-even
point (mean = 3.9173).
4.2.2.4. Profit
According to the survey results on the percentage of businesses that classify costs

according to the variable form of costs, these enterprises determine the Contributing
Profit and Contributing Profit rate, focusing on businesses medium and large scale
operations.
4.2.2.5. Operating leverage
However, according to the survey results on classification of costs according to
variable costs and fixed costs, only 41% of enterprises were surveyed, which also affects the
determination of operating leverage. Therefore, the survey results show that not many
enterprises determine the size of operating leverage (mean = 2.4962), accounting for 38.2%
of surveyed enterprises.
4.2.3. The current situation CVP analysis in business decision making at animal feed
processing enterprises in Vietnam
4.2.3.1. Current status of CVP analysis provides information in decision making before the
business process
Breakeven analysis
According to the survey results, animal feed businesses have initially determined the
break-even point with 85/90 surveyed enterprises (accounting for 94.4%) of which 25 are

large-scale enterprises (accounting for 5.4%). 100%) and 60 small and medium sized
enterprises (92.3%). Thus, about the break-even point is being concerned by business
managers.
However, feed processing enterprises still focus on determining break-even output rather
than break-even revenue. This is shown through the survey results that 85 enterprises
determine break-even output, but only 72 enterprises determine break-even revenue (in
which 100% of large enterprises determine break-even revenue, 72, 3% of small and
medium enterprises).
Target profit analysis
Animal feed processing enterprises in Vietnam determine the consumption volume
and unit selling price of the product based on the target profit. Among 90 enterprises, 82
enterprises (accounting for 91.1%) determine the selling price and sales volume based on the
target profit..

4.2.3.2. Current status of CVP analysis provides information in decision making in the
business process
Large-scale enterprises pay great attention to information from CVP analysis (91% of
large-scale enterprises surveyed) perform CVP analysis for business decision-making, but
medium-sized enterprises small has not really paid attention (accounting for 25%).
On the other hand, according to the survey results, the decisions in enterprises are
mainly product pricing and consumption volume determination (mean = 3,897). In addition,
there are also some businesses that make the decision to choose a business plan when the
price fluctuation of input material
4.2.3.3. Current status of relationship analysis CVP provides information in decision making
after the business process
After enterprises make business decisions, enterprises must evaluate the results
achieved to make appropriate adjustment decisions.
At the end of the business process, businesses need to know whether the consumption
situation has been achieved as planned or not. Therefore, businesses make consumption
reports. According to the survey, 75/90 businesses surveyed all prepared consumption
reports. The content of the consumption report compares the product consumption between
the implementation period and the plan period.
4.3. Factors affecting the application of CVP analysis in making business decisions at
animal feed processing enterprises in Vietnam.
4.3.1. Analyze the reliability of the scale
The results of running Cronbach's Alpha for the first time show that the variable TL6
is not eligible to perform the next analysis, so it will be excluded.
The results of running Cronbach's Alpha for the second time show that the
coefficients of Cronbach's Alpha of the variables are all greater than 0.7 and less than 0.95,
statistically significant. If the coefficients of Cronbach's Alpha are smaller than those of


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Cronbach's Alpha, the total correlation coefficient of each scale is greater than 0.3. This
shows that the scales when analyzing the reliability for the second time are statistically
significant, ensuring the conditions for performing the analysis of the next steps.
4.3.2. Exploratory factor analysis EFA
Analysis results from 6 initial factors with 26 observed variables, removing 1
observed variable is not eligible, then we have KMO coefficient = 0.885 > 0.5, proving that
exploratory analysis of 6 factors is appropriate. ; Bartlett's test has Sig. < 0.05 (0.000), total
variance extracted is 73.196 > 50%, so EFA analysis is appropriate. The Eigenvalues
coefficient is 1,269 > 1, which is significant at the breakpoint coefficient of 1,269, the factors
that explain 73.196% of the variability of the data (Appendix 3). The loading coefficients of
the observed variables are all >0.5 for both the independent and the dependent variables,
proving to ensure the practical significance level of the EFA factor discovery test.
The EFA results show that the observed variables ensure convergent and discriminant
validity. The original theoretical model remains unchanged.
4.3.3. Confirmatory factor analysis CFA
The Cronbach's Alpha test shows that the Cronbach's Alpha coefficient of each factor
is > 0.7, the total correlation coefficient is greater than 0.3, the combined reliability and the
extracted variance of each factor are larger. 0.5 (Table 4.18). Therefore, all factors in the
model are reliable.
The results of the correlation coefficient analysis show that there is a correlation
between the intention to apply and the factors affecting the intention to use the CVP
relationship analysis. Thus, the measurement results show that the proposed author's model
has uniformity, reliability, convergence value, discriminant value, and is completely suitable
for analyzing SEM structural model.
4.3.4. Structural Model SEM
The results of the regression coefficient estimation of the relationships in the model
are presented in the table, this result shows that all the relationships are statistically
significant (P-value < 0.05). However, the relationship between the variable

CHUYENNGANH (Training major) and VANDUNG (Applying CVP analysis) has a
negative Beta coefficient (β = -.178), showing the relationship between the variable Training
major and the application of relationship analysis. The relationship between CVP and CVP is
inverse, showing that people trained in Accounting and Auditing highly appreciate the
application of CVP relationship analysis in making business decisions, so they will apply
higher CVP analysis. .
According to the analysis results, the coefficients of β of the variables are all positive,
showing that the relationships have the same direction, the hypotheses H1, H2, H3, H4, H5
are accepted.
Evaluation of factors affecting the intention to apply CVP . relationship
analysis

The factor “Perceived usefulness” has the highest influence of the three factors on the
intention to apply CVP analysis (Normalization coefficient = 0.326), the factor “Perceived
ease of use” has the second highest influence. Second to Intention to apply (Normalization
coefficient = 0.232), the factor “Social influence” has the weakest impact on Intention to
apply analysis of the CVP relationship (Normalization coefficient = 0.229). The factor
“Intention to use” has a higher influence on Application (Normalization coefficient = 0.483),
the factor “Favorable conditions” has a smaller impact on Application with normalization
coefficient = 0.447.
Assess the direct impact of factors on applying CVP relationship analysis in
making business decisions.
The results show that the biggest influence on usage is perceived usefulness factor (λ
= 0.329), the second biggest influence is perceived ease of use (λ = 0.263), followed by the
influence of user factors. factors of social influence (λ = 0.263), factor of favorable
conditions (λ = 0.211), factor intended to apply did not affect the application of CVP
relationship analysis.
4.3.5. CVP relationship analysis in making business decisions and factors in the model.
- Evaluation of accountants and managers about "CVP analysis application"
- Evaluation of accountants and managers for the factor "perceived usefulness"

- Evaluation of accountants and administrators for the factor "perceived ease of use"
- Evaluation of the "social influence" factor of accountants and managers
- Evaluation of the factor "facilitating conditions" of accountants and managers
- Evaluation of the "aoolication intention" factor of accountants and managers
Sub-conclusion of chapter 4
In this chapter, the author presents some key points about the food processing
industry and the research results on the current situation of CVP analysis and the application
of CVP analysis in making business decisions at food processing enterprises in Vietnam. The
study shows that the factors affecting the application of CVP relationship analysis include 5
factors: perceived usefulness, perceived ease of use, social influence, facilitating conditions
and application intentions. In which, the factor that has the strongest influence on applying
CVP analysis is perceived usefulness, the weakest influencing factor is facilitating
conditions.


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CHAPTER 5. DISCUSSION AND RECOMMENDATION

The analysis results are completely consistent with the results of the original research model
of Venkatesh et al. 2003).
According to the analysis results, the factors affecting the application of CVP
analysis include 5 factors, of which 2 factors have direct influence and 3 factors affect
indirectly through other variables. Two factors that have a direct influence on the application
of CVP analysis are favorable conditions and intentions to apply, in which the most
influential factor is the factor of intention to apply, favorable conditions have weak influence
on the application of CVP analysis. In addition, there are three factors that indirectly affect
the application of CVP analysis through the variable Intention to use which are perceived

usefulness, perceived ease of use and social influence. In which social influence has the least
indirect impact on the application of CVP analysis, the impact of ease of use is stronger than
social influence, the strongest influence is perceived usefulness. This shows that when
accountants and managers find CVP analysis useful for business decision making and easy
to perform, and those involved in their work find it necessary to do so. application, the more
likely it is to apply CVP analysis to accounting work or business decision making.
5.3. Recommendations for solutions to enhance the application of CVP analysis in
business decisions making at animal feed processing enterprises in Vietnam
5.3.1. Recommendations for the CVP analysis
Classify costs into variable and fixed costs
Classify costs into variable and fixed costs. For mixed costs, businesses should use
the least squares method to separate variable and fixed costs.
Determining the selling price according to the profit contributed to serve business
decision-making
In order to serve to make decisions on selling prices in specific consumption
situations, to ensure price competitiveness for products sold after the break-even point, the
author recommends that managers determine the selling price. according to the variable form
of costs, that is, removing the fixed part of CPSXC from the selling price.
Determine the break-even point according to the contribution profit method
The break-even point should be determined at the time before the business process, as
a basis for enterprises to make business plans as well as to proactively make decisions with
consumption plans that change during the business process. To analyze breakeven point,
breakeven factors such as breakeven volume, breakeven revenue or breakeven time need to
be determined based on variable costs, fixed costs and profit. contribute.
Determining the value of operating leverage to analyze profit fluctuations
According to survey results, only 38.2% of enterprises have determined operating
leverage. Thus, the percentage of enterprises that can identify DOL is not high. That will
lead to limitations in determining the volatility of profits when choosing a business plan.
With the meaning of the DOL indicator, the author recommends that feed mills in Vietnam
need to determine the DOL indicator to quickly determine the volatility of profits in order to

5.1. Orientation and development goals of animal feed processing enterprises in
Vietnam
5.2. Discussion research results
5.2.1. Evaluation of the current situation of CVP analysis application in making business
decisions at animal feed processing enterprises in Vietnam.
According to the survey sample selected by the author, the survey results with 250
votes were meaningful, of which the response rate was 133 votes for accountants (including
chief accountants and accountants) and 117 votes for administrators (directors, deputy
directors, branch directors, functional department heads). This shows that managers are quite
interested in CVP analysis and applying this analysis to their decision making. Through the
process of studying the actual situation of applying CVP analysis, it shows that the
application focuses on large-scale enterprises, and small-scale enterprises mainly only
determine the break-even point and selling price, the full cost determination does not serve
well for business decision making.
For businesses that are applying CVP relationship analysis mostly because they
perceive the analysis's usefulness, ease of use is also assessed as a factor affecting the
intention to apply, such as helping Managers have the right information to help make quick
and timely decisions, helping to increase the work efficiency of each position. In addition,
many businesses apply CVP relationship analysis not because they perceive the ease of use
or usefulness of the analysis, but because of the influence of experienced people and those
who have knowledge of the relationship. related to the work of accountants and managers
also apply CVP relationship analysis to business decision making, albeit at a lower level.
These factors all increase the intention to apply the analysis of CVP relationship of
accountants and managers.
5.2.2. Research results of factors affecting the application of CVP analysis in business
decision making.
The research model is based on the fundamental theory of acceptance and use
technology UTAUT by Venkatesh et al (2012) combined with the TAM technology
acceptance model (Davis, 1998) with scales inherited from these two models.

With 250 research samples, the results of the thesis show that all factors have a
positive influence on the intention to apply CVP analysis and apply CVP analysis. By
evaluating the research scale through Cronbach's Alpha test and factor discovery analysis, it
shows that the built factors all reach the necessary reliability values. Confirmatory factor
analysis showed that the model was compatible with market data, achieving convergent and
discriminant validity. That shows the factors affecting the intention to apply and the behavior
of accountants and managers towards applying CVP analysis in making business decisions.


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make a decision to choose a business plan in a timely manner. .
Increase self-production of input materials to reduce product costs and take initiative
in raw material sources.
In order to reduce the cost of feed products, enterprises should consider the option of
self-producing input materials. Self-production will help businesses be proactive about input
materials, reduce dependence on foreign raw materials and the influence of the domestic
market when there is a fluctuation of the global feed market. gender. This analysis needs to
be done before the business process, helping the business to choose a plan and develop an
implementation plan.
5.3.2. Recommendations of influencing factors
- Raise awareness of the usefulness of accountants and administrators
- Raise awareness of ease of use for accountants and administrators
- Increasing social influence for accountants and managers
5.4. Conditions for implementing the solution
On the State side
- The State needs to have a policy to review the development planning of the feed industry
- Focus on quality management of the feed industry

- Building concentrated raw material areas
Towards the Ministry of Finance
The Ministry of Finance also needs to have many guiding documents on management
accounting.
On the business side
- For business managers
- For accountants
On the side of accounting training institutions
Training combined with practical seminars on management accounting.

CONCLUSION

Sub-conclusion of chapter 5
Based on the research results in Chapter 4 and the development orientation of the feed
industry, Chapter 5 discussed the research results, evaluated the research results, and
proposed solutions to enhance the application of CVP analysis in business decision making.
The direction of improvement is determined based on the survey results on the current state
of CVP analysis, the application status and factors affecting the application of CVP analysis.
Chapter 5 concretizes the direction into specific solutions on costs, break-even points of the
CVP analysis and solutions to improve the influence of factors that positively affect the
decision to apply of managers and accountants.

Vietnam's animal feed processing industry is having many development opportunities
as well as facing many challenges in the process of international economic integration.
Applying CVP relationship analysis to provide useful information for business decisionmaking is essential for the survival and sustainable development of pet food processing
enterprises. Applying CVP relationship analysis in feed processing enterprises is a key issue
in helping managers make the right decisions to be able to bring products to the market at the
same time. reasonable selling price, both having a budget to invest in research and
development of new products, choosing appropriate marketing measures, thereby creating
more profits for businesses.

According to the set objectives, the thesis has accomplished the following contents:
The thesis has presented an overview of research works in the world and in Vietnam
on applying CVP analysis in making business decisions, and researches on factors affecting
business decisions. apply this analysis.
The thesis has systematized the basic theoretical issues of CVP analysis in
manufacturing enterprises. (1) The nature of CVP analysis and the system of criteria in the
CVP relationship. (2) Overview of CVP analysis. (3) Identify factors affecting the
application of CVP analysis in making business decisions.
At the same time, the thesis has reflected and clarified the current situation of
analyzing and applying CVP analysis in making business decisions at food processing
enterprises in Vietnam. application of CVP analysis in animal feedprocessing enterprises in
Vietnam through the inheritance of influencing factors in TAM and UTAUT theoretical
models including perceived usefulness, perceived ease of use, social influence and
facilitating conditions.
Thesis development direction:
On the basis of research applying of CVP analysis in business decision making, the
limitation of the study is that it only conducts a survey for 100 food processing companies,
so the representativeness is not thorough. The author has not studied the interplay between
influencing factors and analyzed the difference of control variables through multi-group
analysis. Therefore, this issue offers a new research direction for the author's further studies.