TABLE OF CONTENTS
Title Page i
Certification ii
Dedication iii
Acknowledgement iv
Table of Contents vi
CHAPTER ONE:
1.1
Introduction
1
1.2
The
Statement of the Problem 3
1.3
The
Objective of the Study 3
1.4
Significance
of the Study 4
1.5
Methodology
of the Study 4
1.6
Scope
and Limitation 4
1.7
Plan
of the Study 5
CHAPTER TWO:
2.1
Literature
Review 7
2.2
Management
Accounting 7
2.3
Type
of Accounting 8
2.4
Nature
of Manufacturing Concern 12
2.5
Production
Control 13
2.6
Material
Costing 14
2.7
Labour
Costing 17
2.8
Overhead
Costing 25
2.9
Cost
Reduction Scheme 26
2.10 Value Analysis 28
2.11 Management Accounting Behaviours 29
2.12 Difference between Management
Accounting and Financial Accounting. 31
2.13 Full cost Management Accounting 33
2.14 Differential Management Accounting 34
2.15 Responsibility Management Accounting 35
CHAPTER THREE:
3.1
Brief
History of Guinness Plc 37
3.2
Type
of Management Accounting Information and their Uses 38
3.3
Research
and Methodology 40
3.4
Population
Sample Plan 40
3.5
Data
Collection 41
3.6
Primary
Collection 41
3.7
Secondary
Collection 41
3.8
Conduct
of Field Work 41
CHAPTER FOUR:
4.1
Data
Analysis 44
4.2
Hypothesis 51
CHAPTER FIVE:
5.1
Summary 54
5.2
Recommendation
54
5.3
Conclusion
55
References 56
Bibliography 57
Questionnaire 58
CHAPTER ONE
1.1 INTRODUCTION:
Management Accounting is the
application of professional knowledge and skill in the preparation and
presentation of accounting information, in such a way as to assist management
in the formulation of policies and in the planning and control of the operation
of the undertaking.
Cost
accounting is the application of accounting and costing principles, methods and
techniques in the ascertainment of cost and the analysis of saving and /or
excesses as compared with previous experience or with standards. It is this
link i.e., the subject matter of this project. Costing and costing method
supply the basis of factual information on which the management accountant can
built up his presentation of planning and control. In this project, I will
first look into the following cost items:
a) Expenditure
on material, wages, and overhead is recorded, classified and allocated so that
the cost of product may be accurately ascertained.
b) This
cost may be related to sales values.
c) Profitability
may be determined.
The
accounting system collates and coordinates all the activities of the
organization that is the total cost incurred, by adding the cost incurred in
factory floor or overhead cost from other section of the organization used in
pre-determined rate. The industry operates through branches or product unit as
they are better known, with such products unit reporting to the head quarters.
The
aims of any business enterprises (Sole proprietor, partnership or limited
liability company) is to maximize profit minimize costs. Thus, project is
specialized in the area of management account information as an inevitable
instrument for effective and efficient running of an enterprise in our society.
Guinness
Nigeria Plc is a manufacturing company, manufacturing in any form affect to a
great extent the life of many people. In a country like Nigeria,
majority of her economy activities is comprises by enterprises and mostly
manufacturing enterprises.
Apart
from its contribution to the country’s Gross National Product (GNP), it plays a
very important role in the life of the people of Nigeria. The brewery industry has
in employment over a million workers and is formally committed to the training
and development of many Nigerians.
There
are many other groups of people that are indirectly employed by the brewery
industry; these are service industries which supports the brewery industry.
There are transporters who convey the beer products from the factory to the
depots which are strategically situated in all part of the country. It is from these depots that the sales men
sell the beer product to their distributors who in turn supply the retailers
who sell to the consumers.
1.2 STATEMENT OF THE PROBLEM
The problem of this research work is how to
understand the role of management accountants in manufacturing industries.
The function goes like this:
·
Keeping
and maintaining an efficient management accounting system.
·
Controlling
of organization structure in such a way as achieve the desired profit.
1.3 OBJECTIVES OF THE STUDY
The
main objective of my study is to determine the appropriate or otherwise of the
management accounting procedures undertaken by Guinness Nigeria Plc.
To
be able to form an opinion on this issue, I will critically examine financial
accounting reports, the cost control system i.e. accounting for fixed costs,
and absorption cost i.e. wages/salary,
factory retail/item of machinery, general administration cost e.t.c. upon the
critical examination of these records this research work will point area of
weakness. If they exist and recommend probable alternative which in my opinion
will enhance the company effective internal control and promote maximum
efficiency.
Another
objectives of my study is to determine the role of the management accounting as
tools for management decision and policy formulation i.e. production policy
one-off decision taking and relevance of variance analysis as a tool for future
production.
1.4 SIGNIFICANCE OF THE STUDY
This
study is to ensure effectiveness and efficiency of the manufacturing
industries. On the completion of this project, I have contributed to knowledge
through:
i. Justification
or otherwise of my hypothesis
ii. Credibility
of management accounting as a tool for management decision making.
iii. Foundation
for future study of the topic.
1.5 METHODOLOGY OF THE STUDY
My
study on this issue is limited to the head office of Guinness Nigeria Plc,
Ikeja brewery and the Ogba brewery.
These
two have been carefully selected because they are brewerying of both Stout and
Harp larger beer are undertaken there.
Data
used for this project were collected through two sources primary and secondary
sources. Primary sources involve questionnaires and personal interview with
responsible officers. The secondary sources involve company journals, factory
publications and manuals as well as past projects.
1.6 SCOPE AND LIMITATION
The
role of management accountant can not be eliminated in any business
organization. Management plays a vital role in decision making, planning and
control of all business ranging from soles proprietor business to partnership
and also joint companies.
In
this study, I limited my area of coverage to manufacturing company due to the
under listed hindrances;
i.
Financial difficulties
ii. Time
factor problem
iii. Geographical
location; and
iv. Other
academic works.
1.7 PLAN OF THE STUDY
This
project work comprises of five chapters; chapter one of the project work deals
mainly with the introduction of the study, which comprises of background of
management accounting in manufacturing company, the aims and objectives of the
study, scope and limitations of the study, the statement of the problem of research and also plan of the study. Chapter two of
this project also deals with the review of past literatures where various
author who had contributed to the topic: “the role of management accounting in
manufacturing industries” was consulted. Also, terms of management, nature of
management accountants, types of management accountants, production control,
material costing, Labour costing, overhead costing and cost reduction. Scheme, value analysis
and management accounting and financial accounting, full cost management
accounting, differential management accounting and responsibility management
accounting.
Chapter three
of this project deals with the brief history of Guinness plc, type of information
and their uses of management accounting, research methodology, population
sample plan, data collection, primary and secondary data and conduct of field
work.
Chapter of
this project deals with data analysis and hypothesis of the study. Chapter five
of this project deals with summary, recommendations of final conclusion and
bibliography.
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