Volume : III, Issue : VII, July - 2013

The Impact of Cost of Production on Gross Profit – A Study with Cotton Industry

M. A. Dhandapani, Ms. K. Radha

Abstract :

The gross profit is the return earned out of company’s investment and best indicator of performance of production department. Its mainly depends upon cost of production. If cost of production increases the gross profit will decreases and vice–versa. The present study concentrates on the impact of cost of production on gross profit and to assess the relationship between components of cost production i.e. raw materials, labour & other manufacturing expenses and gross profit. For evaluating the above objectives, the leverage and mean are used. Suryajyothi spinning mills Ltd have been taken as sample unit and data collected from the year 2002–03 to 2011–12. The results show that there is a significant impact of cost of production on gross profit. The company has to reduce the cost of production; thereby they can increase the gross profit and improve the wealth of the company.

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Article: Download PDF   DOI : 10.36106/ijar  

Cite This Article:

M.A.Dhandapani, Ms.K.Radha The Impact of Cost of Production on Gross Profit - A Study with Cotton Industry Indian Journal of Applied Research, Vol.III, Issue.VII July 2013

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