COST ACCOUNTING APPLICATION MANAGEMENT PLANNING CONTROL DECISION MAKING

TABLE OF CONTENT

Title page

Approval page

Dedication

Acknowledgment

Abstract

Table of content

CHAPETR ONE

INTRODUCTION 

1.1        Background of the study

1.2        Statement of problem

1.3        Objective of the study

1.4        Research Hypotheses

1.5        Significance of the study

1.6        Scope and limitation of the study

1.7       Definition of terms

1.8       Organization of the study

CHAPETR TWO

LITERATURE REVIEW

CHAPETR THREE

3.0        Research methodology

3.1    sources of data collection

3.3        Population of the study

3.4        Sampling and sampling distribution

3.5        Validation of research instrument

3.6        Method of data analysis

CHAPTER FOUR

DATA PRESENTATION AND ANALYSIS AND INTERPRETATION

4.1 Introductions

4.2 Data analysis

CHAPTER FIVE

5.1 Introduction

5.2 Summary

5.3 Conclusion

5.4 Recommendation

Appendix

Abstract

This 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.

 CHAPTER ONE

INTRODUCTION

• Background of the study

The 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 case study. Every 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. It 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. Decisions 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. In 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.

STATEMENT OF THE PROBLEM

In the 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 unsatisfactory. There 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. Most 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.

• OBJECTIVE OF THE STUDY

The objectives of the study are;

1. To ascertain the Indispensable in determining the cost per unit of a product.
2. To ascertain the factor in pricing decision, production planning and cost control
3. To ascertain the important tool in running a section, department or factory, that is, organizational planning, decision on alternative methods, wages cost control and material cost control.
4. To ascertain the important in profit planning, make or buy decision
   • RESEARCHN HYPOTHESES

For the successful completion of the study, the following research hypotheses were formulated by the researcher;

H₀:     Cost Accounting is not an indispensable tool in management planning, control and decision making.

H₁:   Cost Accounting is an indispensable tool in management planning, control and decision making.

H₀²: there is no factor in pricing decision, production planning and cost control

H₂: there is factor in pricing decision, production planning and cost control

1.5 SIGNIFICANCE OF THE STUDY

It is the desire of any management to maximize profit to boast of high profit all expenses incurred must have to be deducted from turnover; whether profit will be low or high largely depends on how much deductions (expenses) will be. Excessive cost reduces turnover excessively this in turn reduces profit. This project which is centered on the importance of establishing adequate and proper cost for production will

• Be of immense contribution towards helping managers to determine proper cost for organizational operations
• Help managers and others in industry, commerce, local authorities and similar organization to gain a working knowledge of the principles and processes of cost.
• Enable managers to analyse, select and implement the principle, techniques and method that best suit their firm.

• SCOPE AND LIMITATION OF THE STUDY

This study covers a general review of the different methods and techniques of costing and how cost accounting affects the planning, control and decision making process of an organization using the Nigerian Bottling Company (NBC) as a case study. The researcher encounters some constrain which limited the scope of the study;

1. a) AVAILABILITY OF RESEARCH MATERIAL: The research material available to the researcher is insufficient, thereby limiting the study
2. b) TIME: The time frame allocated to the study does not enhance wider coverage as the researcher has to combine other academic activities and examinations with the study.
3. c) Organizational privacy: Limited Access to the selected auditing firm makes it difficult to get all the necessary and required information concerning the activities

1.7 DEFINITION OF TERMS

COST ACCOUNTING: Cost accounting is a facet of management accounting that determines the actual cost associated with manufacturing a product or providing a service by looking at all expenses within the supply chain.

MANAGEMENT: is essential for organized life and necessary to run all types of management. Good management is the backbone of successful organizations. Managing life means getting things done to achieve life’s objectives and managing an organization means getting things done with and through other people to achieve its objectives.

DECISION MAKING: Decision-making is the process of identifying and choosing alternatives based on the values, preferences and beliefs of the decision-maker.

1.8 ORGANIZATION OF THE STUDY

This research work is organized in five chapters, for easy understanding, as follows

Chapter one is concern with the introduction, which consist of the (overview, of the study), historical background, statement of problem, objectives of the study, research hypotheses, significance of the study, scope and limitation of the study, definition of terms and historical background of the study. Chapter two highlights the theoretical framework on which the study is based, thus the review of related literature. Chapter three deals on the research design and methodology adopted in the study. Chapter four concentrate on the data collection and analysis and presentation of finding.  Chapter five gives summary, conclusion, and recommendations made of the study

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