THE RAMIFIED FACTORS AFFECTING THE CONCEPT OF PROFITABILITY AS A GUIDE TO POLICY DECISION IN ACCOUNTING

Before I delve into this issue, let us look from the realistic point of view, the concept of profitability- it can be seen as that concept which provides management with alternatives course of action according in the various degree of profitability, stating dearly in relevant cost accounting from the costs and benefit associated with individual projects which enables management to the most profitable. Majority of the policy decision of manufacturing industries are generally directed towards profitability. Policy decisions made under this concept has a direct effect on increasing and enhancing the general profitability of the manufacturing industry concerned. Unfortunately, this laudable guide has been relegated to a supportive role in some manufacturing industries because of certain factors million against. Such factors have in most cases affected the profit position of industries and in extreme cases to huge losses, which sometimes ding such companies involved for unexpected liquidation. Hence, this project work tried to know those factors affecting the concept and respective effects on the profit position of the selected industries. In view of covering the three-dimensional focus of the research the project focused on three major areas: 1. The exogenous factors affecting the concept of profitability. 2. The endogenous factors affecting the concept of profitability. 3. The political factors affecting the concept of profitability. These three areas combined to give a broader view of the factors militating against the concepts of profitability.