ABSTRACT
This study is designed to provide knowledge for
costing information and price determination.
The need for cost accounting came with increased
industrialization, engineering an expansion in manufacturing. It is therefore obvious that in efficient
system of costing is essential for industrial control.
In period of boom, manufacturers are able to show profit notwithstanding
the leakage which pass unchecked, but in periods of trade competition concealed
inefficiencies have to track down and rigorous control must be exercised to
ensure even modest margin profit.
There is not yet an agreed best method of costing products though it may
be helpful to recognize that cost allocation are being used to obtain a
mutually acceptable price and not necessary to portray caused and effect relationship
of cost incurrence. But price determination from cost under efficient operation
through efficient cost system will most probably approximate the price of the
product to its value.
TABLE OF
CONTENTS
Title page
Approval page
Dedication
Acknowledgement
Abstract
Table of content
CHAPTER ONE:
1.0
Introduction
1.1 Statement
of problem
1.2
Purpose of study
1.3
Significance of limitation of study
1.4
Scope and limitation of study
1.5
Definition of terms
CHAPTER TWO:
2.0
Literature Review
2.1 Cost
determination
2.2
Cost Control
2.3
Fixed and variable cost
2.4
Natural and functional classification cost
2.5
Other theoretical work on cost and pricing
2.6
Price flexibility
2.7
The Nature of Pricing problem
2.8
Limitation of cost oriented price
2.9
Cost bread pricing theories
2.10
Price to achieve corporate objectives
CHAPTER THREE:
1.0
Research design and methodology
3.1 Sources
of data
3.2
Primary sources of data
3.2.1
Personal/Oral interview
3.2.2
Questionnaire method
3.3
Secondary sources of data
3.4
Population and sample size determination
3.5
Method of data collection
3.6
Method of validating the instrument
3.7
Method of data analysis
CHAPTER FOUR:
2.0
Data Presentation, Analysis and Interpretation
4.1 Preliminary
information
4.2
Data analysis
4.3
Testing and interpretation of hypothesis
CHAPTER FIVE
3.0
Summary of Findings, Conclusions and Recommendations
5.1 Summary
of findings
5.2
Conclusions
5.3
Recommendations
Bibliography
CHAPTER ONE
1.0
INTRODUCTION:
Accountancy has been defined by GLAUTER and UNDERDOWN,
in their book titled “Accounting theory and practice as “a reporting activity
that forms part of any management information system. In this regard, accountings is often
explained as sciences of activities that are connected and form successive steps
starting with observing, the collecting, recording, analyzing and finally
communicating accounting information to its users.
The
study of modern cost accounting yields insight regarding both accountants’ role
and manager’s role in an organization because managers want to know how
accountants measure performance and often depending upon accounting data for
guiding their decisions.
Cost
accounting has a major purpose of accumulating the cost of an organizations
products and services. This aspect is
regarded as product costing purpose.
1.1 STATEMENT OF PROBLEM:
A view shared by previous researcher on this topic
that there has been a shortfall in the utilization of cost accounting
information in some organization and their pricing policy decision making. It is right of this that this work attempt to
suggest a good system which comprises a set of procedure, records and
facilities that have to do with the systematic and routine compilation and
dissemination of cost information and price determination.
AMONG THE
PROBLEMS TO BE ANALYSED ARE:
(i) To highlight on management inadequate concern over proper pricing
guide through cost information.
(ii) Necessary
conditions for a costing system.
(iii) Evaluating
the present state of the application of the cost information in the
determination of price.
(iv) Appropriate
basis of preparation of the cost.
1.2
PURPOSE OF STUDY:
The purpose of this study will help to determine how
cost accounting information is applied in an organization and how it is used in
Price determination, what the researcher has learnt as theories is been put into practice in real life
situations, relating to the cost accounting information and price
determination. It help the researcher to
see the practical application of the principles stated formally by the cost
accounting and determining the cause of the short fall in its application and
when applied, the advantages therein. It
also helps to determine an appropriate condition and environment for prayer
comparison and analysis of cost.
1.3 RESEARCH QUESTIONS:
In this study, “Cost accounting information and price determination” (A
case study of Nigerian Breweries Plc) the following research questions come to
mind: They are:
(i) Is Cost accounting information used as a
management tool for price determination in Nigerian Breweries Plc?
(ii) Has the application of the Cost accounting
information helped Nigerian Breweries to be efficient and effective in its
operations?
(iii) What other technique apart from Cost
accounting information does Nigerian Breweries employ in decision making?
(iv) Are these other techniques superior to Cost
accounting information ?
(v) What problems do Nigerian Breweries
encounter in decision making?
1.4 STATEMENT OF HYPOTHESIS
HYPOTHESIS I:
Ho: Cost-accounting information is not
extensively used or applied in Nigerian Breweries Plc.
Hi: Cost-accounting information is extensively
used or applied in Nigerian Breweries Plc.
HYPOTHESIS II:
Ho: The application of cost accounting
information has helped in price determination.
Hi: The application of cost accounting
information has not helped in price determination.
1.5 SIGNIFICANCE
OF THE STUDY:
This work is intended to be of benefit to processing
business in general. It is hoped that by
improving the profitability of hoped this study has benefited the economy as a
whole.
Following
the completion of work and the result made available to them, the processor
will be in a position to re-examine their cost accounting information and price
determination techniques and update them so as to enjoy these benefits
available to firms with good cost accounting and price determination techniques
and also avoid plugging their business into financial and operating
difficulties.
Readers
will appreciate other people’s view on cost accounting information and price
determination and see the workability of this costing models and price
determination system in real life situations.
1.6
SCOPE AND LIMITATIONS OF THE STUDY:
The scope of this study
is restricted to the cost accounting information and its utilization in
determining the price of products. should have intended to cover all the
manufacturing industries located in different States of the Federation but the
researcher intends to limit this topic to only to Nigerian Breweries Plc 9th
Mile Depot, Enugu State due to time constraints, distance and financial
handicap. The study of Nigerian
Breweries 9th Mile Depot Enugu shall also serve other manufacturing
companies in States of the Federation since the same techniques are applied in
other companies. Therefore, the
researcher will rely heavily on the Nigerian Breweries 9th Mile
Depot since they have adequate information data relevant to the study.
1.7
DEFINITION OF TERMS:
(i) HISTORICAL ACCOUNTS:
These
are financial statements prepared from past activities of the enterprise. Since these are actual figures of cost and
revenue obtained in the past, management can determine the price of its product
through it.
(ii) COST ACCOUNTING:
This is an element of financial management that
generates information about the cost of an organization and its
components. As such, cost accounting is
a subset of accounting in general.
(iii) INDIRECT COSTS:
There
are elements of cost that are associated with or caused by two or more cost
objective jointly, but are not directly traceable to each of them individually.
(iv) COST CONTROL:
This
is the regulation by executive action the costs of operating an undertaking
particularly where such action is guided by cost accounting.
(v) COST CENTRE:
Cost center therefore can be defined as a location,
person or item of equipment (or group of these) for which cost may be
ascertained and used for purpose of cost control.
Login To Comment