Research On The Application Of CVP Analysis In The Financial Management Of W Company

Machinery manufacturing industry is the basic industry of our national economy and its development drives the overall progress of national economy.At present,in the fierce competition in the new economic environment,mechanical manufacturing labor price advantage is no longer with core competitiveness,it is a new era of knowledge economy plays a leading role,is the age of information,knowledge economy and globalization,in such a rapidly changing social and economic background,has also increased the competition between the enterprises.In the highly competitive socialist market economy,if a company wants to survive and develop and remain invincible forever,it is particularly important to make management decisions.CVP analysis is a management tool that cannot be neglected in management accounting.It plays an irreplaceable role in the management process by using CVP in the survival and development of enterprises.As a mechanical manufacturing enterprise,W company,when making financial management decisions,makes use of CVP analysis to find and solve problems through the internal relations among profit,cost,output and other factors,so as to make the company stable profit and development.This paper on the basis of the production and sale of the W company actual situation,fully use the CVP analysis theory knowledge,build the CVP analysis model of W company,2 plant profitability in W company and put forward a reasonable solution to the company in the process of the new plant investment and financing analysis,to guide the development direction of W company in the future.In the current market,the use of CVP analysis can reduce production costs and increase the profits of enterprises,while improving the rationality and predictability of financial decision-making.W company should pay attention to cost-volume-profit analysis,strengthen cost control and fund-raising risk management,which is of great significance for development.