Maximization of profit is the pursuit of every business organization
profit itself is the excess of revenue over expenditure. To obtain
profit, increase in selling price of the product or reduction in the
cost of production is inevitable. Since excessive price increase is
dreaded by the public, it becomes necessary to achieve the business
objective through controlling the cost production each product.
This project was therefore undertaken to give actual background on
cost control measure, the heed for the control, cost items to be
controlled and effect of uncontrolled cost of production on the
organization, using Chisco Bakery industry Enugu as a case study.
According to the study, uncontrolled cost could lead to higher
operating costs, lower profit marginal and dissatisfaction to the
chairman of the company.
Using questionnaire methods it was found that cost could be
controlled in different manufacturing areas such as material, labour and
overheads. Also discussed was the major finding that the company had
not been able to produce to its installed capacity, it employed a system
of remuneration that guarantied a fixed salary and its production.
More ever, The use of standard costing has been advocated because, it
will avail the company the opportunity of comparing actual cost with
standard in order to check unnecessary various and also to make for
easier interpretation of management reports.
TABLE OF CONTENT
Table of content
List of table
1.1 Background of the study
1.2 Statement of the problem
1.3 Objectives of research
1.4 Scope and delimitation of the study
1.5 Research questions
1.6 Significance of study
1.7 Definition of terms.
2.0 Literature review
2.2 Overview of cost control
2.3 Cost reduction
2.4 Cost control
2.5 Characteristic of cost control
2.6 Controlling cost in an organization
2.7 Labour cost control
2.8 Overhead control
2.9 Cost control techniques
3.1 Research design
3.2 Area of study
3.4 Sample and sampling techniques
3.5 Research instrument
3.6 Reliability validity of instrument
3.7 Method of data collection
3.8 Method of Data analysis
4.1 Data analysis
4.2 Costing system
4.3 Material control
4.4 Labour control
4.5 Overhead control
4.6 Budgetary control
4.7 Number of questionnaire distributed
5.4 Suggestion for further research
5.5 Implication of the research result
5.6 Limitation of the study
5.7 Discussion of the result.
LIST OF TABLES
TABLE 4:1The Effect of staff strength of the company
TABLE 4:2: Showing the type of costing technique Employed.
TABLE 4:3:showing how bin card kept in respect of all good.
TABLE 4:4:The Ordering and carrying of goods.
TABLE 4: 5: Showing how Overhead is absorbed by the firm.
1.1 BACKGROUND OF THE STUDY
With the attendant development in Hi tech material souring and
government economic policies, manufacturing sector is becoming more
complex and completive as day price of our locally manufactured goods is
of public concern. The increase in prices of our attributed to high
cost of production of goods. It is therefore for this reason that the
need for control arose. Beside the government policy of privatization
and commercialization calls for preparedness on the part of
manufacturing sector to square up for the stiff competition.
Cost control becomes imperative when one looks at the objectives of
firms which among other thing include making as much profit as possible
to satisfy the investors, becomes a good corporate entity to customers,
government, local community and other external members. All these arms
are tied to the cost control measures.
Cost control be done in two ways:
Operating and accounting controls.
Controlling cost through personal observation and
supervision of operations does operating control. Such control attempts
to minimize wasted other costs. And accounting control on the other hand
entails the creation of a system of recording, which will establish
accountability for cost that is comprise with standard. It is therefore
against this background that this study and attempts to critically X –
ray the effects of cost control in a manufacturing organization or
Metro best international is a bakery which engages in the
baking of high quality bread-Chisco bread. There product is highly
competitive in Enugu and