Key Features:
- No of Chapters: 5
- No of Pages: 61
- Well Detailed Information
- Tables
Abstract:
This research assesses Cost Accounting Techniques as a tool for performance evaluation in Nigerian manufacturing companies with reference to Coca-Cola Nigeria Plc, Abuja branch as a case study. 67 questionnaires were administered to the respondents, 52 filled and returned. Simple percentage was used to analyze the data collected through questionnaire. It was discovered that the cost accounting techniques of Coca-Cola Nigeria Plc, Abuja are not evaluated on interval basis. And that the cost accounting techniques has not successfully helped management of Coca-Cola Nigeria Plc, Abuja in making timely decisions. It was recommended that the management of Coca-Cola Nigeria Plc, Abuja should make provision for regular evaluation of the costing technique in use to ascertain the company’s compliance and aligned with the organizations planned objectives. Continuous evaluation of the techniques will assist to identify problem associated with it and correction taken to achieve improved performance and that the company should consider other alternative costing techniques like Activity based costing and Direct costing which could be better in providing timely information for management decision making. Since the costing techniques adopted has not so far been successful in enabling management make timely decisions based on the findings, recommendation were made and conclusion drawn.
Table of Content:
TABLE OF CONTENTS
Title page ……………………………………………………. i
Declaration page ………………………………………. ……. ii
Approval page ………………………………………………... iii
Dedication page ………………………………………………. iv
Acknowledgement page …………………………………….… v
Abstract page ……………………………………………….… vi
Table of contents …………………………………………….… vii
CHAPTER ONE
1.0 INTRODUCTION …………………………………………..1
1.1 Background of the study………………………………….1
1.2 Statement of the problem…………………………………2
1.3 Objectives of the Study…………………………………...3
1.4 Research Questions………………………………………..3
1.5 Significance of the Study………………………………….4
1.6. Scope of the Study…………………………………...……4
1.7. Definition of Terms……………………………………….5
CHAPTER TWO
2.0 LITERATURE REVIEW
2.1. Introduction………………………………………………...7
2.2. Concept of Cost Accounting……………………………….7
2.3 Relevance of Cost Accounting……………………………8
2.4 Concept of Cost ….………………………………………9
2.5 Classification of cost ………………………………….....10
2.6 Concept of Cost Accounting Techniques………………..11
2.7 Types of Cost Accounting Techniques…………………..12
2.7.1 Marginal Costing Technique……………………………..13
2.7.2 Absorption Costing Technique….………………………..14
2.7.3 Standard Costing Technique……………………………..15
2.8. Concept of Performance Evaluation……………………..16
2.9 Determinants of Performance Evaluation………………..17
2.10 Criteria for Performance Evaluation……………………...18
2.11 Application of Cost Accounting Techniques on Performance
Evaluation………………………………………………..20
CHAPTER THREE
3.0 RESEARCH METHODOLOGY
3.1 Introduction……………………………………………….22
3.2 Research Design…………………………………………..22
3.3 Population of the Study…………………………………..23
3.4 Sample size and Sampling Techniques…………………..24
3.5 Method of Data Collection………………………………26
3.6 Techniques of Data Analysis……………………………27
CHAPTER FOUR
4.0 DATA PRESENTATION, ANALYSIS, AND FINDINGS
4.1 Introduction………………………………………………29
4.2 Presentation and Analysis of Data……………………….29
4.3 Summary of findings…………………………………….41
CHAPTER FIVE
5.0 SUMMARY, CONCLUSION AND RECOMMENDATION
5.1 Summary…………………………………………………42
5.2 Conclusions………………………………………………43
5.3 Recommendations…………..……………………………43
References……………..………………………………44
Appendix A: Letter of Introduction……………………51
Appendix B……………………………………………52
Introduction:
INTRODUCTION
1.2 Background of the Study
Goals set by organization will only be in vain if much attention is not paid to employee’s effort or performance for successful accomplishment. (Neely, Adams and Kennerly, 2002). In order to achieve set goals and objective successfully, there is need to focus on performance for most organizations and manufacturing firms is delivering products and services that meet or exceed customers’ expectations, thereby creating a competitive advantage so that customers are retained and market share is increased. (Sasson, Alvero and Austin, 2006)
Once, effective performance evaluation is established by managers and even business organizations employees are motivated to strike hard to be recognized and even their performance would reflect on productivity (Neely et al, 2002).
Therefore, cost accounting techniques plays a vital role in evaluating the performance of employees by managers and even business organization. According to previous researchers, as stated by Nguyen (2011), different costing techniques have different core competitive advantages to organizations. The effective evaluation of performance depends on both human factors, methods, policies and costing techniques adopted by companies and also using costing techniques in particular for performance reports add accuracy to the evaluation process. (Needles crosson, 2002). Organization are forced to implement the use of costing techniques in their operations in order to assist and ensure that their employees perform their respective tasks the right way. (James and Mona, 2011).
Cost Accounting Techniques is the process of ascertaining cost. These techniques consist of rules and principles which govern the products or services. The main object of costing is the analysis of financial records as to subdivide expenditure and to allocate it carefully to selected cost centers and hence build up a total cost for the product. (The Institute of Company Secretaries of India, 2013). These techniques are necessary in companies because it control cost, increases performance and maximizes profit in order to satisfy its customers. The basic aim of every business organization is to achieve its objectives, goals or targets successfully.
1.2 Statement of the Problem
Low productivity is usually the negative effect of lack of proper performance evaluation, absence of performance evaluation brings about staff low job performance. Therefore Cost Accounting Technique are to be implemented but the challenges associated with implementing Cost Accounting Techniques are significant as the key to performance evaluation is to meet or exceed consumers expectations, one major problem with measuring consumers satisfaction is that there may often be discrepancies between the consumers viewpoint and the companies understanding of what constitute performance evaluation.(Douglas and Connor, 2003).Previous scholars have tried to look at the link between costing techniques and performance evaluation.(Feng, Terziovsk and Samson, 2008) in their paper on the relationship of costing techniques with operational and
business performance, examined manufacturing companies. The reports central finding was that Cost Accounting Techniques has a positive and significant effect on operational performance, but a weak effect on business performance.
1.3 Objectives of the Study
The main objective of this study is to evaluate Cost Accounting Techniques as a tool for performance evaluation in Nigerian manufacturing companies. However, the following are the specific objectives:
1. To evaluate the techniques of costing used by Coca-Cola Nigeria Plc.
2. To ascertain whether Cost Accounting Techniques used by Coca-Cola Nigeria
Plc.... assist in overall performance measurement.
3. To evaluate the extent to which Cost Accounting Techniques aid management
in decision making in Coca-Cola Nigeria Plc.
1.4 Research Questions
The following research questions are drawn based on the above stated objectives:
1. What are the Cost accounting techniques used by Coca-Cola Nigeria Plc?
2. How does Cost accounting techniques used by Coca-Cola Nigeria Plc assist in overall performance measurement?
3. To what extent does Cost accounting techniques used by Coca-Cola Nigeria Plc.....aid management in decision making?
1.5 Significance of the Study
This research is carried out to expatiate the cost accounting techniques as a tool for performance evaluation in Nigerian manufacturing companies, the outcome of this research will be of importance to the following:
The management of Coca-Cola Nigeria Plc will find this work very useful for it will explore deeply their operation in order to bring out and proffer some solutions to the limitation faced by them in adopting the techniques in evaluating performance.
Future researchers: This study will be of importance to future researchers especially polytechnic and university students and other academic scholars that may see the work both as reference point for research in related area and as a indelible literature in the course of their study.
General public: The research outcome will be of immense benefit to individuals in both private and public sector of an economy and also those who are intending to adopt the techniques in making sound decisions on evaluating their company’s performance.
1.6 Scope of the Study
The research work is to assess cost accounting techniques as a tool for performance evaluation in Nigerian manufacturing companies taken as a case study of Coca-Cola Nig Plc, Abuja branch. This research work is restricted/focused only on costing techniques for evaluating performance so as to make this research work to be more appreciable. Therefore, this research work covers a period of ten (10) years from 2007-2017.
1.7 Definition of Terms
i. Cost: is usually a monetary valuation of efforts, material, resources, time and utilities consumed, risks incurred and opportunity forgone in production and delivery of a good or service.
ii. Accounting: is the process of identifying, recording, measuring, classifying, verifying, summarizing, interpreting and communicating financial information of an organization to enable users make decision.
iii. Cost accounting: is the process of accumulating and accounting for the flows of costs in a business. it is a technique or method for determining the cost of a project, process or thing through direct measurement, arbitrary assignment or systematic and rational allocation. The appropriate method of determining cost often depends on the circumstance that generates the need for information. (Swamidass, 2008)
iv. Technique: It is a body of specialized procedures and methods used in any specific field, especially in an area of applied science. it is a skill or ability to apply procedures or methods so as to effect a desired result. (Kent sepkowitz, 2014).
v. Performance evaluation: is the use of quantitative tools to gauge an organizations performance in relation to a specific goal or an expected outcome. (Needles crosson, 2002).
vi. Marginal costing: The C.I.M.A London defines marginal costing as a technique of costing which aims at ascertaining marginal cost (extra costs) determining the effects of changes in costs, volume and price e.t.c on the company’s profitability, stability e.t.c
vii. Standard costing: it is a technique of cost accounting which compares the standard cost of each product or service with actual cost to determine the efficiency of the operation, so that any remedial action may be taken immediately.
viii. Absorption costing: it is the technique that takes into account charging of all costs both variable and fixed cost to operation.
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