What question did this study set out to answer?

The study aims to extend cost-volume-profit analysis to incorporate stochastic sales behavior using chance-constrained programming.

March 18, 2026The Accounting Review

A Chance-Constrained Programming Approach to Cost-Volume-Profit Analysis.

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Authors

PBP. Brockett ACA. Charnes WCW. W. Cooper

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Implication

This research demonstrates how chance-constrained programming can enhance breakeven analysis under uncertainty, highlighting new limits on sales volume.

Key Points

The study aims to extend cost-volume-profit analysis to incorporate stochastic sales behavior using chance-constrained programming.
Reinterpreted existing cost-volume-profit analyses using chance-constrained programming formulations.
Developed extensions to allow for upper and lower limits on sales volume.
Provided suggestions for integrating probabilistic programming with liquidity and payback constraints.
Standard breakeven analyses apply generally even in uncertain sales scenarios.
New methods for analyzing upper and lower limits on volume were developed.
Recommendations were made for further research into probabilistic programming approaches.

Cite This Study

Brockett et al. (1984) studied this question.

synapsesocial.com/papers/69ba426d4e9516ffd37a2b6f https://doi.org/10.2308/tar-4490909

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Implication

This research demonstrates how chance-constrained programming can enhance breakeven analysis under uncertainty, highlighting new limits on sales volume.

A Chance-Constrained Programming Approach to Cost-Volume-Profit Analysis.

Discussion

Member takes

Implication

Key Points

Cite This Study

A Chance-Constrained Programming Approach to Cost-Volume-Profit Analysis.

Discussion

Member takes

Implication

Key Points

Cite This Study

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