This project is on “Cost Control in Practice in Small Scale
Enterprises” with special reference to selected Bakery Ozoro. Chapter one deals
with background of the study, statement of the problem, objectives of the
study, significance of the study, scope of the study and limitation of the
study. Chapter two is literature review where authorities in the field of cost
accounting were discussed. Chapter three contained the methodology of the
research under this chapter the method employed to source for data is both
primary and secondary source. The statistical tool employ is the use of table
and simple percentage. Chapter four based on data presentation and analysis of
result while chapter five entails the summary of findings, conclusion and
recommendations. The researcher discovered the organization incur idle time and
the cost of idle time are included in the cost of production, therefore he
recommends that management of the organization should ensure that plants and
machinery be checked regularly by way of continues servicing so as to reduce
cases of idle time in the cost of operation in the organization.
of the Study
One of the basic feature by which smooth running of an
organization could be accomplishes rest of the chronology operations. It is the
fact that step by step movement of cost control must be put in place in order to
prevent fraud and irregularities in the establishment must especially for
proper records keeping and control of
In any business organization with out proper control of cost
it will be difficult to know to produce, material needed at a particular time.
Lucey (2002) said the cost accounting system of any
organization is the foundation of internal information system.
Management needs variety information to plan, to control
cost in the enterprises. It is the production mangers who need such information
that regarding raw materials, at a particular time in other to know quality to
produce to avoid over production or under production which ever the case mat
be. Hence, the need of cost control shall not be over emphasized in a
History of the Organization
Fig bakery was established in the year 2001. The bakery is
located along hospital road in Isoko North Local Government area. A total of 18
workers are working in the enterprise excluding 3 securities men. Out of these
18 workers are unskilled workers while the remaining three are skilled workers
these include the production manager the bookkeeper who keep the day to day
records of the enterprises and the inventory.
Mena bakery was established in the year 1999; the bakery is
located at Adegbe Street along hospital road in Isoko North Local Government
area. A total of 12 workers two (2) securities men, the business started with
capital of #80,000 equally thousand naira.
Favourity bakery was established in the year 2009. The
bakery is located along Owhelogbo Road, Ozoro in Isoko North Local Government
area. A total of twenty workers the production manager, the account clerks and
the security men.
Wibo bakery was established in the year 2008, the bakery is
located along Ozoro / Ughelli Express way back of Rendezvous hotel in Isoko
North Local Government area. A total of (26) twenty six employees are working
in the enterprises these incite the production managers, the account clerk as
wells security men.
1.3 Statement of
The study is carried out to find out how cost is controlled
so that wastages will be avoided in the organization a situation when there is
no proper costing information business organization will encounter many
manufacturing organization by using unskilled labour or semi-skilled labour
whose does not have or known the effectiveness of cost control in an organization
these of course affect productivities retain expansion and limit competitive
due to lack of awareness to cost control.
of the Study
The main objectives of this study are to known how the
organization control cost using costing methods.
Also to find out how costing system and technique is being
used to analyzed and allocate the expenditure of the business.
For the purpose of this study the researcher formulate the
following research question
How do you organization control cost?
To what extend do you practices cost accounting in your
In what way do cost accountings help in the determination 0f
cost and control in your organization.
of the Study
This study will be of a great significance to many small
scale business enterprises most especially the four organizations selected as
case study (Fig Bakery, Ozoro, Mena Bakery, Ozoro Favourite Bakery. Ozoro and
Wibo Bakery, Ozoro).
It will also be of significance to these that want to
established baker business.
Finally, it will be helpful to people that are interested of
setting up small scale business of deferent king.
1.7 Scope of the
The scope of this research work is particularly on cost
accounting in practice in small scale enterprises with references to fig
bakery, Mena Bakery Favourity all in Ozoro in Isoko North Local Government area
This research study will be base on descriptive this reason
hypothesis testing will not be necessary.
of the Study
In the course of the research, the researcher faced allot of
problems they include;
Financial constraint: This constraint prevented the
researcher to travel to sourcing for information needed to complete this
Time factor: Time factor is another factor that affects the
researcher because the time duration made available was too short, these
affected the researcher greatly.
Textbook; Textbook is another function that affected the
researcher, some of the textbook; needed to updates the study literature review
in details from was not available.
Cost: Expenses incurred on goods purchase or services
Cost allocation: Identification of cost objective also
called cost apportionment, cost assignment, cost distribution and cost
Cost centre: Unit within the organization in which the
manager is responsible only for costs.
Cost control: Steps taken by management to answer that cost
objective set down in the planning stages are attained and to assure that all
segment of the organization function in a manner consistent with its policies.
Controllable costs: Variable cost such as direct materials
direct labour and variable that are usually considered controllable by the
department manager. Further a certain portion of fixed cost also is
Controlling: Implementation of a decision and the use of
feed back so that goods and specific strategies plan of the firm are optimally
Consumed cost: Measure of expired benefits.