research work is aimed at highlighting the role played by Cost accounting information
to the planning, control and decision making process of the management of an
organization using Nigeria bottling company (NBC) as a case study. If identify
the different costing techniques and methods available, the type of information
produced by an accountant and how each information fits into the information
need of management as stated in the alternative and as discovered by the
researcher through questionnaire and personal interviews. That is, the prospect
of a manufacturing company Endeavour is to found out, that for any organization
to be successful, there must be accounting department to prove timely,
adequate, relevant and correct information regarding the cost of products,
processes and general running of the firm and fix selling price for products
and services. An independent accountant and cost accountant need to be present
for possible production of relevant information.
BACKGROUND OF THE STUDY
main theme of this project is to bring to highlight the importance of costing
to the existence of any organization, using the Nigeria Bottling company as a
activity and operation of an organization involves cost. In view of this, I
intend to discuss the objectives, principles, techniques and methods of costing
relating to the analysis and gathering of cost information for planning,
control and decision making.
must be emphasized, that the existence of a sound well organized basic costing
system is fundamental to whatever use is made of the information whether for
routine cost ascertainment purposes or for a one – off decision.
depend on financial factors therefore it is of utmost importance that proper
costing methods and techniques suitable for an organization operations to be
ascertained, adopted and operated effectively and religiously throughout the organizations`
process and operations.
essence, organization are established for a defined purpose which objective can
only be seen or shown to the world by the output (product) it produces. For
there to be an output the most necessary is the input. Inputs do not come for free;
payments have to be made on them. Taking the Nigerian Bottling Company (NBC) as
a case study, it needs inputs in the form of raw materials, labour etc. to
produce goods (soft drink) and payment must be made for these inputs, this
boils down to cost.
OF THE PROBLEM
past, many companies have witnessed considerable lapses and increasing changes
in management disciplines. Costing an important element in the overall
operation of an organization through the provision of relevant information
about cost is one of the problems organizations are facing. Because there are
no satisfactory requirements to maintain detailed cost records, some small
firms keep only traditional financial accounts and prepare cost information in
an ad-hoc-fashion. In all but small firms this approach is likely to be
is a vast range of systems in operation ranging from simple analysis to
computer based accounting systems incorporating standards, variance analysis
and the automatic production of control and operating statements. These
different costing methods are meant to suit different organization the
adaptation of the wrong method, for a company will constitute a problem instead
of a solution. Also poor or inadequate knowledge of a particular method of
costing has constituted problems for many firms.
companies are still using the simple analysis system to set cost while some
companies do not even have a costing system. This no doubt has led to poor
planning, control and decision making.
AND PURPOSE OF THE STUDY
project is designed to provide a clear and concise understanding of the
importance of costing to the manager in carrying out his/her responsibility for
planning controlling and making decision which will lead to achieving certain
goals. This research work aim to highlight that costing is
Indispensable in determining the cost per
unit of a product.
A factor in pricing decision, production
planning and cost control.
An important tool in running a section,
department or factory, that is, organizational planning, decision on
alternative methods, wages cost control and material cost control.
Important in profit planning, make or buy