Cost-volume-profit analysis by using the enterprise input-output modeling

Enterprise input-output modeling (EIOM) can be used in a process of decision making for many purposes. In this paper the cost price models are developed to perform cost-volume-profit (CVP) analysis in a mass-production with the complex structure of a production process. An illustrative example trom the chemical industry is also presented, with the purpose to show the effect of a single factor or combination of factors (sales volume, level of activity, and selling/supply prices) on the financial results.