Description
Management to assure that the cost objectives set down in the planning stage are attained and to assure that all segments of the organization function in a manner consistent with its policies. For effective cost control, most organizations use standard cost systems, in which the actual costs are compared against standard costs for performance evaluation and the deviations are investigated for remedial actions.
COST CONTROL IN A MANUFACTURING COMPANY
( A CASE STUDY OF UNILEVER NIGERIA PLC.)
BELLO, BAMIDELE TAJUDEEN
(MBA/99/3909)
MAY, 2004
CERTIFICATION
S. r ~
I hereby certify that this research.was carried out by Bello, Bamidele Tajudeen in the department of General Studies, Federal University of Technology, Akure, Ondo' State under my supervision.
~~~'\QA;o
...............................
-
,b\ D'\
~.
ASEKUNOWO¥. Project Supervisor
o.
•,
11
DEDICATION
This project work is dedicated to Almighty God for his will which is ever sure.
Also to my uncomparable darling- Mosunmola Stella for her companionship endurance during the course of study.
and
III
ACKNOWLEDGMENT
i give
thanks to God Almighty for seeing me through this stage of my academic
pursuit despite all odds, May His name be glorified for ever.
I am particularly grateful to Mr. Asekunowo B.O, my supervisor whose invaluable contribution and "spoon feeding" gave me a sense of direction in the writing of this essay. In fact I benefited much under him.
I wish to acknowledge
the moral and financial support of my parents, junior to the successful completion of my
brothers and sister for their contribution course.
My thanks goes to my darling wife Mosunmola for her restless efforts to and
see that I achieve success in life through fmancial, words of encouragement those beautiful kisses wherever I am morally depressed.
I remain profoundly thankful to all my lecturers for the useful knowledge gained from them and also to my course-mate for the beautiful time we shared together. May God bless you all.
IV
TABLE OF CONTENTS Pages Title Page Certification Dedication Acknowledgement Table of Content Abstract J.O J. J 1.2 1.3 1.4 1.5 J.6 2.0 2.1 2.2 2.3 2.4 2.5 2.6 CHAPTER ONE: INTRODUCTION 2
3 3 4 5
IJ
III
IV
V
VI
Statement of the Problem Objectives of the Study Hypothesis to ~e tested Significance of the Study Scope of the Study Limitation CHAPTER T\VO: LITERATURE REVIEW Nature and Element of Costing Material Cost Labour Cost Overhead Cost Cost Control Benefits of Cost Control
7
7
8 J6
20
24 26
v
2.7 3.0 3.1
Brief history of Unilever Nig. PIc. CHAPTER THREE: Population of the Study Sampling Technique Sources of Data Method of Analysis Model Specification CHAPTER FOUR: DATA ANALYSIS AND PRESENTATION OF FINDINGS RESEARCH METHODOLOGY
27
29 29 29
30 30 31
3.2
1.3 3.4
3.5
4.0
33 33 34
4.1 4.2 4.3
Return of Questionnaire Classification of Data Testing of Hypotheses
42
5.0
CHAPTER FIVE:
SUMMARY, CONCLUSION AND RECOMMENDATION
47
S.l
Summary Conclusion Recommendation Sample of Questionnaire Bibliography
47
5.2 5.3
S.4
48 49
5.5
:
VI
ABSTRACT The purpose of this study is to show how cost affects the operational policy of manufacturing company and its control to achieve the maximum output. Through keen analysis of data to deduce the effectiveness of overall cost control system, purchase produce of materials, method of valuing labour and charging of overhead as all affects cost in a manufacturing company.
To unravel this puzzle relevant literatures were contacted with an adequate questionnaire administered to selected respondents that have related services with the department of production. The results gathered from the respondents were analyzed and tested as an hypotheses using relevant model. In this research emphasis were laid on the components of production costs, Effects on profit, and pro babe ways of reducing total cost of production.
In general, the findings in this research after due analysis of data collected shows that cost could be controlled in order to increase level of profit. The research however 'shows that an organization needs a proper monitoring in the area of materials (as to reduce wastages), labour (avoidance of time wastages and ghost workers) and unnecessary sales costs in terms of overhead etc.
As regards this study from analysis, cost control could be regarded as an important part in the effort of management to ensure business stability. This however enables the organization for the formation of policy in the area of materials as to procurement, procedure and stocking, Labour policy and overheads. From the analysis, it is therefore recommended that organization should control cost to induce more profit.
\In
doc_610374558.pdf
Management to assure that the cost objectives set down in the planning stage are attained and to assure that all segments of the organization function in a manner consistent with its policies. For effective cost control, most organizations use standard cost systems, in which the actual costs are compared against standard costs for performance evaluation and the deviations are investigated for remedial actions.
COST CONTROL IN A MANUFACTURING COMPANY
( A CASE STUDY OF UNILEVER NIGERIA PLC.)
BELLO, BAMIDELE TAJUDEEN
(MBA/99/3909)
MAY, 2004
CERTIFICATION
S. r ~
I hereby certify that this research.was carried out by Bello, Bamidele Tajudeen in the department of General Studies, Federal University of Technology, Akure, Ondo' State under my supervision.
~~~'\QA;o
...............................
-
,b\ D'\
~.
ASEKUNOWO¥. Project Supervisor
o.
•,
11
DEDICATION
This project work is dedicated to Almighty God for his will which is ever sure.
Also to my uncomparable darling- Mosunmola Stella for her companionship endurance during the course of study.
and
III
ACKNOWLEDGMENT
i give
thanks to God Almighty for seeing me through this stage of my academic
pursuit despite all odds, May His name be glorified for ever.
I am particularly grateful to Mr. Asekunowo B.O, my supervisor whose invaluable contribution and "spoon feeding" gave me a sense of direction in the writing of this essay. In fact I benefited much under him.
I wish to acknowledge
the moral and financial support of my parents, junior to the successful completion of my
brothers and sister for their contribution course.
My thanks goes to my darling wife Mosunmola for her restless efforts to and
see that I achieve success in life through fmancial, words of encouragement those beautiful kisses wherever I am morally depressed.
I remain profoundly thankful to all my lecturers for the useful knowledge gained from them and also to my course-mate for the beautiful time we shared together. May God bless you all.
IV
TABLE OF CONTENTS Pages Title Page Certification Dedication Acknowledgement Table of Content Abstract J.O J. J 1.2 1.3 1.4 1.5 J.6 2.0 2.1 2.2 2.3 2.4 2.5 2.6 CHAPTER ONE: INTRODUCTION 2
3 3 4 5
IJ
III
IV
V
VI
Statement of the Problem Objectives of the Study Hypothesis to ~e tested Significance of the Study Scope of the Study Limitation CHAPTER T\VO: LITERATURE REVIEW Nature and Element of Costing Material Cost Labour Cost Overhead Cost Cost Control Benefits of Cost Control
7
7
8 J6
20
24 26
v
2.7 3.0 3.1
Brief history of Unilever Nig. PIc. CHAPTER THREE: Population of the Study Sampling Technique Sources of Data Method of Analysis Model Specification CHAPTER FOUR: DATA ANALYSIS AND PRESENTATION OF FINDINGS RESEARCH METHODOLOGY
27
29 29 29
30 30 31
3.2
1.3 3.4
3.5
4.0
33 33 34
4.1 4.2 4.3
Return of Questionnaire Classification of Data Testing of Hypotheses
42
5.0
CHAPTER FIVE:
SUMMARY, CONCLUSION AND RECOMMENDATION
47
S.l
Summary Conclusion Recommendation Sample of Questionnaire Bibliography
47
5.2 5.3
S.4
48 49
5.5
:
VI
ABSTRACT The purpose of this study is to show how cost affects the operational policy of manufacturing company and its control to achieve the maximum output. Through keen analysis of data to deduce the effectiveness of overall cost control system, purchase produce of materials, method of valuing labour and charging of overhead as all affects cost in a manufacturing company.
To unravel this puzzle relevant literatures were contacted with an adequate questionnaire administered to selected respondents that have related services with the department of production. The results gathered from the respondents were analyzed and tested as an hypotheses using relevant model. In this research emphasis were laid on the components of production costs, Effects on profit, and pro babe ways of reducing total cost of production.
In general, the findings in this research after due analysis of data collected shows that cost could be controlled in order to increase level of profit. The research however 'shows that an organization needs a proper monitoring in the area of materials (as to reduce wastages), labour (avoidance of time wastages and ghost workers) and unnecessary sales costs in terms of overhead etc.
As regards this study from analysis, cost control could be regarded as an important part in the effort of management to ensure business stability. This however enables the organization for the formation of policy in the area of materials as to procurement, procedure and stocking, Labour policy and overheads. From the analysis, it is therefore recommended that organization should control cost to induce more profit.
\In
doc_610374558.pdf