This study is designed to appraise the effect of production
cost control in a manufacturing industry/company. The effect of cost control in
a manufacturing industry is varied and highly challenging. They are concerned
with future planning and direct the operation and decision making and other financial
plans, processing financial information falls within their areas of competence.
For effective cost control, the company should practice process costing methods
in it’s true meanings. This means that cost should be ascertained along the
production process for adequate and effective cost control mechanism, this will
go along way in reducing the production cost.
TABLE OF CONTENTS
Table of contents
Background of the
Statement of the problem
Objectives of the study
Significance of the
Scope of the study
Limitation of the
Definition of term
Nature of cost accounting
What cost control means
The concept of cost control and cost minimization
Steps involved in cost control
The need for cost control strategies and techniques
Cost control / cost minimization techniques and strategies
The nature and classification of cost
Research methodology and design
Sources / methodology of data collection
Population and sample size
Validity and reliability of measuring instrument
Method of data analysis
Presentation and analysis of data
Data presentation, classification and calculation
Analysis of data
Test of hypotheses
Interpretation of result
Summary, conclusion and recommendations
Summary and findings
is the transformation of raw materials into finished goods through the use of
labour and the factory facilities. It is clear from this point of view that
currently the prices of raw materials are exorbitant to the extent that
manufacturing industries are in a serious profit squeeze. They are struggling
to maintain satisfactory earnings in a situation that increases are becoming
more difficult to obtain even atleast proportional degree of cost.
companies whether sole proprietorship, corporation among others must have an
objective and the primary objective of these company is to maximize profits. It
therefore follows that for a company or organization to make profit, it must
have control over the cost of it’s production and services.
BACKGROUND OF THE STUDY
It is paramount that the feature of every organization is in
the pursuit of a goal(s) and objective and this target exists in different
dimension. So to maintain the level of earning or to increase earnings following
this situations, companies have to take drastic measures to control, if not
reduce costs do away with waste and increase productivity at al ebbs.
This research work is conducted to see in general the effect
of cost in a manufacturing industry and also to verify the discriminate
increase in the price of commodities produced by companies which have attracted
the attention of many citizens, especially those who know the applications of
the continuous rise in price (inflation) on nation’s economy in general. This
rapid increase in price of manufactured goods can be attributed to the cost of
production of goods and services and it is in light of this reason that the
need for cost control rises.
This research work will therefore attempt to give a
comprehensive account of the cost control in the field of manufacturing company
with a particular emphasis on Longman furniture company Enugu.
In other words, the purpose of this study is to examine the
various cost control measure being used in manufacturing company using Longman
furniture company as a case study.
The consequence of these reasons is necessary because the
industry/company involved in the manufacturing of many products faced with
discriminate rise in price of their product which is attributed to the cost of
production, when cost control is applied the product cost will be reduced.
1.2 STATEMENT OF THE
major discussions have been going on in government circles, among the members
of the public and within private organizations about serious cost control. Some
of these problem include:
The discriminate increase in the price of commodity by
Some manufacturing industries are in a serious profit
squeeze, struggling to maintain satisfactory earnings.
The rapid increase in price of manufactured goods as a
result of high cost of production of goods and services.
1.3 OBJECTIVE OF THE
objectives of this study
To examine the cost control system in operation at Longman
furniture company Enugu.
To evaluate them as to their effectiveness or otherwise
To find out all the inherent deficiency
To make recommendation for solving identified problems and
possibly improved and undated any absolute techniques lines with recent trends.
To find out the effect of cost control in the price of a
product, growth of the firm and operating expenses.