TABLE
OF CONTENTS
TITLE PAGE
CERTIFICATION
DEDICATION
ACKNOWLEDGMENT
TABLE OF CONTENTS
CHAPTER
ONE
1.0 General
Introduction
1.1 Aims
and Objective of the Study
1.2 Problem
of the study
1.3 Brief
Historical Background of the case study
1.4 Scope
and Limitation of the study
1.5 Definition
of Terms
CHAPTER
TWO
2.0 Literature
Review
2.1 Definition
of Process Costing
2.2 Classification
of Cost
2.3 Elements
of Cost
2.4 Objectives
of Process Costing
2.5 Procedure
for Process Costing System
2.6 Characteristics
of Process Costing
2.7 Advantages
of process Costing System
2.8 Limitation
of Process Costing
2.9 Functions
and duties of Cost Department
2.10 Roles
of Cost Accountant
CHAPTER
THREE
3.0 Research
Methodology
3.1 Research
Design
3.2 Data
Collection Instruments
3.3 Primary
Source of Data
3.4 Secondary
Source of Data
3.5 Population
3.6 Sample
Size
3.7 Sampling
Technique
3.8 Validity
and Reliability of Data
3.9 Statement
of Research Hypothesis
CHAPTER
FOUR:
4.0 Presentation
and Analysis of Data
4.1 Questionnaire
4.2 Presentation
and Analysis of Data and Research Question
4.3 Presentation
and Analysis of Data and Research Question
CHAPTER
FIVE
5.0 Summary
5.1 Conclusion
5.2 Recommendations
5.4 Suggestion
for Further Researcher
REFERENCE
CHAPTER
ONE
1.0 GENERAL INTRODUCTION
No doubt that for
any manufacturing company to grow easily, there must be as way to process their
cost in order to achieve the organizational objectives.
Management needs a
variety of information to plan for the future activities, assist in the
measurement of efficiency and effectiveness in essence of machine, men,
materials and money ton control and to make decisions. Information regarding
the financial aspect of performance in any organization is provided by the
costing system. Cost per unit of running a section, department or factory,
wages costs for unit of production or per period of production, scrap or
rectification cost, behavior with varying levels of activities and so on are
provided by costing system.
Ever since the use
of money replaced barter, it is the concentration of manufacturing facilities
into factories that give impetus to the development of recognizable costing
system. The early developments were almost entirely related to manufacturing
concerns but today costing is used very widely in the hospitals, transport
undertakings, local authority offices, and banks as well manufacturing
companies.
1.1
AIMS AND OBJECTIVE OF THE STUDY
i. To examine the effect of cost
system in the quality of the product of the company.
ii. To examine the effect of cost
system on the production of the organization.
iii. To examine the significance of cost
system control in the price to NBC profits.
1.2 PROBLEM OF THE STUDY
The main
characteristics of manufacturing firms are that obtain raw materials and
component and convert them into finished goods ready for sales. The problem
arises as to how to account for the cost of these products. Problem also arises
as to determination of the value or worth of raw materials and work inn
progress at each process.
1.3 BRIEF HISTORICAL BACKGROUND OF THE
CASE STUDY
Nigeria Bottling
Company came into existence on 8th May 1886, Late A.G Leventis founded the
company and was the first in this country to be offered franchise by an
international “Soft drink firm”. The first plant which was sited in Lagos went
into operation in March 1953. Coke was the first soft drink to have its own
designed shaped bottles, which was different from the company, went public by
the issue of 372,500 ordinary shares of 50kobo each. This was in compliance
with the Nigerian Enterprise promotion Decree of 1972.
Some years after
the Ibadan plant was opened (through later shut down due to non-availability of
good water in Ibadan metropolis) that of Port Harcourt was established and many
others followed of which Ilorin plant came into existence in April 1979 so as
to be able to meet the demands of the customers in the region. Ilorin plant was
mainly established to meet the needs of the people in Bida, Jebba, Ogbomosho,
Okene, Osogbo, Kontagora, Ijagbo, Offa, Lokoja and Ilorin metropolis. The plant
has 8 managers.
The ranges of soft
drink bottled by Nigerian Bottling Company Ilorin plant include Fanta Orange,
Coke, Sprite, Krest, Bitter lemon, Ginger Ale and Eva water. In terms of sales
the company enjoys a wide acceptance of its products.
Quality is the key
word which determines the success of the whole operation only the best
ingredients are used for the making of their soft drinks and sophisticated
washing and filling equipment have been installed at all part. Extremely high
standard of hygiene are maintained are maintained to ensure that tip quality
product reach their customers. Ranging Nigeria Bottling Company as a whole its
performance is highly appreciated.
1.4 SCOPE AND LIMITATION OF THE STUDY
The study intends
to appraise eh process costing system in the manufacturing company as a whole
with reference to NIGERIAN BOTTLING COMPANY (NBC) COCA-COLA ILORIN PLANT.
Manufacturing
Company as a whole have little or no different in their costing system, hence
effort will be made to pay s significant attention to the various accounting
books and records most particularly the one involving cost kept by NIGERIA
BOTTLING COMPANY (NBC) COCA-COLA ILORIN PLANT. The study will be restricted to
the worker in the manufacturing mangers in the organization. However, the major
constraints in the confidentiality over certain vital documents which the
company may not be willing to release for the fear of getting to the hand of
the competitors cost for a broader and effective scope of the study is also a
limiting factor. Therefore conducting the research in many materials that the
researcher cannot afford, the researcher will also combine this study with
academics work simultaneously.
1.5 DEFINITION OF TERMS
- Cost Accounting: The application of costing and cost accounting principles, methods and techniques to the science art practice of cost, control and ascertainment of profitability.
- Process Costing: Is a type of costing system that is used for uniform or homogeneous product.
- Cost: The amount of expenditure (actual or national) incurred on or attributed to a specific thing or activity.
APPRAISAL OF PROCESS COSTING SYSTEM IN MANUFACTURING COMPANIES IN NIGERIA (A CASE STUDY OF NIGERIA BOTTLING COMPANY PLC (NBC), ILORIN PLANT)
