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THE EFFECT OF COSTING METHODS ON PRICE DETERMINATION IN A MANUFACTURING COMPANY (A CASE STUDY OF UNILEVER NIGERIA PLC)



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THE EFFECT OF COSTING METHODS ON PRICE DETERMINATION IN A MANUFACTURING COMPANY (A CASE STUDY OF UNILEVER NIGERIA PLC)



ABSTRACT

 

The topic of this research work is the effect of costing methods on price determination in a manufacturing company (A case study of Unilever Nigeria, Plc).

 

Manufacturing costing methods are accounting techniques that are used to help understand the value of inputs and outputs in a production process. By tracking and categorizing this information according to a rigorous accounting system, corporate management can determine with a high degree of accuracy the cost per unit of production and other key performance indicators.

 

Management needs this information in order to make informed decisions about production levels, future investment, competitive strategy and most especially price determination. Such information is primarily necessary for internal use or managerial accounting.

 

Chapter one deals with its introduction, background, objectives, significance, scope and limitations of the study, it also deals with statement of problems and hypothesis and the relevant research questions. Chapter two deals with the literature review where the various types of costing methods and its effects on pricing are discussed. Chapter three deals with the research design and methodology in which the population and sample sizes were determined. Chapter four deals with the presentation and analysis of data, two hypothesis were tested and results interpreted. It was concluded that the use of costing methods will help to determine the profitability of a manufacturing firm and that costing technique will enhance a manager’s understanding on product cost. Chapter five deals with summary, conclusion and recommendations.

 

TABLE OF CONTENTS

 

Title page- –       –       –       –       –       –       –       –       -i

 

Approval page-  –       –       –       –       –       –       –       –       -ii

 

Dedication-        –       –       –       –       –       –       –       –       -iii

 

Acknowledgment-      –       –       –       –       –       –       –       -iv

 

Abstract-   –       –       –       –       –       –       –       –       –       -vi

 

Table of contents-      –       –       –       –       –       –       –       -viii

 

Chapter one

 

Introduction-     –       –       –       –       –       –       –       -1

Background of the study-   –       –       –       –       –       -5

Statement of the problem- –       –       –       –       -7

Objectives of the study-     –       –       –       –       –       -9

Research questions-   –       –       –       –       –       –       -10

Statement of hypothesis-   –       –       –       –       –       -12

Significance of the study-   –       –       –       –       –       -12

Scope of the study-    –       –       —     –       –       –       -14

Limitation of the study-      –       –       –       –       –       -15

Definition of terms.-   –       –       –       –       –       –       -16

Chapter two

 

Literature review-      –       –       –       –       –       –       -19

2.1 Introduction-       –       –       –       –       –       –       –       -19

 

2.2 Costing defined –  –       –       –       –       –       –       -24

 

2.3 Purpose of costing methods   –       –       –       –       -28

 

2.4 The role of cost accountant   –       –       –       –       -29

 

2.5 Different types of costing methods-       –       –       –       -32

 

2.6 Process costing- introduction and principles-  –       -43

 

2.7 Process costing-work in progress, joint products and by-products –  –       –       –        –       –       –       –       –       -50

 

2.8 joint product        –       –       –       –       –       –       –       -55

 

2.9 the effects of transfer price on costing method –     -61

 

Chapter three

 

Research design and methodology-     –       –       –       -66

Introduction-     –       –       –       –       –       –       –       -66

Research design-       –       –       –       –       –       –       -67

Sources/methods of  data collection-   –       –       -67

Population and sample size-        –       –       –       –       -69

Sampling technique-  –       –       –       –       –       -70

Validity and reliability of measuring instrument-   -71

Method of data analysis –    –       –       –       –       –       -72

Questionnaire    –       –       –       –       –       –       –       –       -74

 

Chapter four

 

Presentation and analysis of data-       –       –       –       -78

Introduction-     –       –       –       –       –       –       –       -78

Presentation of data-  –       –       –       –       –       -78

Analysis of data-        –       –       –       –       –       –       -79

Test of hypothesis-    –       –       –       –       –       –       -91

Interpretation of results-    –       –       –       –       –       -94

Chapter five

 

Summary, conclusion and recommendations-       –       -95

Introduction-     –       –       –       –       –       –       –       -95

Summary of findings- –       –       –       –       –       -95

Conclusion-       –       –       –       –       –       –       –       -97

Recommendations-    –       –       –       –       –       –       -97

References-       –       –       –       –       –       –       –       –       -100

 

Appendix (ces)- –       –       –       –       –       –       –       -102

 

CHAPTER ONE

 

INTRODUCTION

A costing method is a method of costing which is designed to suit the goods that are processed or manufactured or the way that services are provided. It follows therefore that each firm will have a costing method which has unique features.

 

        Nevertheless, there will be recognizable common features of the costing system of the firm who are broadly in the same line of business.

 

        Conversely, firms employing substantially different manufacturing methods, for example, a food processing and jobbing engineering factory will have distinctly different costing methods as will the huge variety of services organization. It must be clearly understood that whatever costing method is employed, the basic costing principles relating to analysis, allocating and apportionment will be used.

 

CATEGORIES OF COSTING METHODS

 

There are two broad categories of product costing methods; namely:

 

Specific order costing and

Continuous operation or process costing.

SPECIFIC ORDER COSTING

 

This can be defined as the basic costing method applicable where the work consists of separate contracts, jobs or batchs.

 

In most cases, the job or contract is the cost unit and frequently but not always, the jobs or contracts are different from each other. The main sub-divisions of specific order costing are:

 

Job costing

Control costing

Batch costing

Citation - Reference

All Project Materials Inc. (2020). THE EFFECT OF COSTING METHODS ON PRICE DETERMINATION IN A MANUFACTURING COMPANY (A CASE STUDY OF UNILEVER NIGERIA PLC). Available at: https://researchcub.info/department/paper-7589.html. [Accessed: ].

THE EFFECT OF COSTING METHODS ON PRICE DETERMINATION IN A MANUFACTURING COMPANY (A CASE STUDY OF UNILEVER NIGERIA PLC)


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The topic of this research work is the effect of costing methods on price determination in a manufacturing company (A case study of Unilever Nigeria, Plc). Manufacturing costing methods are accounting techniques that are used to help understand the value of inputs and outputs in a production process. By tracking and categorizing this information according to a rigorous accounting system, corporate management can determine with a high degree of accuracy the cost per unit of production and other key performance indicators. Management needs this information in order to make informed decisions about production levels, future investment, competitive strategy and most especially price determination. Such information is primarily necessary for internal use or managerial accounting. Chapter one deals with its introduction, background, objectives, significance, scope and limitations of the study, it also deals with statement of problems and hypothesis and the relevant research questions. Chapter two deals with the literature review where the various types of costing methods and its effects on pricing are discussed. Chapter three deals with the research design and methodology in which the population and sample sizes were determined. Chapter four deals with the presentation and analysis of data, two hypothesis were tested and results interpreted. It was concluded that the use of costing methods will help to determine the profitability of a manufacturing firm and that costing.. Click here for more

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