THE SIGNIFICANCE OF COST ACCOUNTING INFORMATION IN THE MANUFACTURING INDUSTRY.

THE SIGNIFICANCE OF COST ACCOUNTING INFORMATION IN THE MANUFACTURING INDUSTRY.

 

(Case Study of Nigeria Guinness Plc)

ABSTRACT

In this time of rising prices, brewery like any other manufacturing company needs an efficient system of cost control as an essential factor in reducing the cost system of production in order to maximize profit. Due to inefficient cost control system some companies just manage to break even or in most cases make substantial losses hence our assessment of cost control in Nigeria manufacturing at Guinness. As a result of this, our finding is to show the appropriate system of cost control which can be used to minimize production system of cost and its effect under the manufacturers condition. The entire study consist of five chapters, chapter one introduced us to the study, highlighted the background, purpose of the study and an insight into the historical background of Guinness Nigeria plc. Chapter two is a relevant literature on cost while chapter three briefly discuss the research method applied. A detail of data obtained in chapter four, chapter five the last chapter, contains summary, conclusion and recommendation.

TABLE OF CONTENTS

Title Page         -           -           -           -           -           -           -           -           -           i

Certification    -           -           -           -           -           -           -           -           -           ii

Dedication       -           -           -           -           -           -           -           -           -           iii

Acknowledgement   -           -           -           -           -           -           -           -           iv

Table of contents      -           -           -           -           -           -           -           -           v

Abstract           -           -           -           -           -           -           -           -           -           viii

CHAPTER ONE: INTRODUCTION

1.1Background to the Study          -           -           -           -           -           -           4         

1.2 Statement of the Problem       -           -           -           -           -           -           5

1.3 Research Question        -           -           -           -           -           -           -           6

1.4 Objective of the Study -           -           -           -           -           -           -           6

1.5 Statement of Hypothesis         -           -           -           -           -           -           7

1.6 Significant of the Study            -           -           -           -           -           -           -           7

1.7 Scope of the Study        -           -           -           -           -           -           -           8

1.8 Limitation of the study -           -           -           -           -           -           -           8

1.9 Definition of terms        -           -           -           -           -           -           -           8

CHAPTER TWO: REVIEW OF RELATED LITERATURE

2.1 Meaning of Cost Accounting  -           -           -           -           -           -           11

2.2 The Concept of Cost Accounting       -           -           -           -           -           11

2.3 Characteristics of cost accounting information     -           -           -           21

2.4 Analysis and classification of Cost     -           -           -           -           -           23

2.5 Cost control and performance Evaluation            -           -           -           -           27

2.6 Direct and Indirect cost          -           -           -           -           -           -           28

CHAPTER THREE: RESEARCH METHODOLOGY

3.1 Introduction      -           -           -           -           -           -           -           -           36

3.2 Population of the Study         -           -           -           -           -           -           36

3.3 Sample and Sampling size      -           -           -           -           -           -           37

3.4 Sources of Data            -           -           -           -           -           -           -           -           38

3.5 Method of data collection     -           -           -           -           -           -           39

3.6 Research Instrument   -           -           -           -           -           -           -           40

3.7 Method of data Analysis        -           -           -           -           -           -           41

CHAPTER FOUR: DATA PRECENTATION AND ANALYSIS

4.1 Data Presentation        -           -           -           -           -           -           -           43

4.2 Data Analysis     -           -           -           -           -           -           -           -           43

4.3 Hypothesis Testing       -           -           -           -           -           -           -           50      

CHAPTER FIVE: CONCLUTION AND RECOMMENDATION

5.1 Summary of Findings  -           -           -           -           -           -           -           56

5.2 Conclusion          -           -           -           -           -           -           -           -           57

5.3 Recommendation         -           -           -           -           -           -           -           58

Reference           -           -           -           -           -           -           -           -           59

Appendix A        -           -           -           -           -           -           -           -           61

Questionnaire   -           -           -           -           -           -           -           -           62

CHAPTER ONE

Introduction

Nigeria Commence and Industry are passing through a period of economic recession, they are struggling to maintain satisfactory earnings in a situation where cost are raising and some industrialist complained that price increase are becoming more and more difficult to obtain even at less proportionate degree with cost.

Foreign and domestic competition as well government effort to prevent further inflation put serious resistance and additional increase. In addition to those are government (both at the state and federal levels) stabilization measure aim at re-strutting and improving the economy and their attendant effect.

Some of those measures like the second tier foreign exchange market (S.F.E.M) having had the effect of not only causing the increase price as a result of increased cost of inputs they have ever gone further to multiply in built imported inflation by the incremental exchange rate of the naira against the convertible currency that are used in those importation market.

To maintain earnings or increase earning in the face of those conditions, many companies are taking strong steps to control cost if not reduce cost and eliminating waste and increase productivity. Automation and improvement in technologies are helping to control and reduce cost but are often insufficient.

The top managements of many companies a consequence are putting pressure on their organization at every point to reorganize the role of cost accounting jobs are being timed and standards set in manufacturing department where timing and standard did not exist previously. These procedures are also being made more detailed. They are tighter, religiously adhered to and are not controlled more vigorously.

Economies are sought all through the organization in this wise, the manufacturing companies are not left out. In order to endure their survival and also to create more positive impacts on the economic growth many method of cost control are being utilized. The purpose of this research work therefore, is to examine critically the various roles/significant of cost account information in the manufacturing industry in Nigeria, it study of Guinness Nigeria plc. Benin City.