TABLE OF CONTENTS
Certificate
i
Dedication ii
Acknowledgement
iii
Table
of content v
CHAPTER
ONE
INTRODUCTION
1.1 Introduction 1
1.2 Statement of the Research Problem 3
1.3 Objective of the Study 5
1.4
Significance of the Study
6
1.5 Research Question 7
1.6 Scope and Limitation of the Study 9
1.7 Plan of the Study 9
1.8 Definition of the Key Terms 11
CHAPTER TWO
LITERATURE
REVIEW
2.0 Historical of Nigeria Bottling Company
PLC 14
2.1 Decision-Making in Management 18
2.2 Cost Volume Profit (Break-Event) Analysis
Model 20
2.3 Limitation of the Model 21
2.4 Decision under Certainty, Uncertainty and
Rise 22
2.5 Role of decision models 23
CHAPTER
THREE
RESEARCH
METHODOLY
3.1 Method of Data Collection 25
3.2 Population and Sample Size 29
3.3 Sample and Sampling Technique 30
3.4 Method of Data Analysis 31
CHAPTER
FOUR
DATA
PRESENTATION AND ANALYSIS
4.1 Discussion of the Analysis 33
4.2 Discussion of Finding 37
CHAPTER
FIVE
SUMMARY,
CONCLUSION AND RECOMMENDATION
5.1 Summary of Finding 38
5.2 Conclusion 39
5.3 Recommendation 40
Bibliography
43
Appendix
45
Questionnaire 46
CHAPTER ONE
1.1 INTRODUCTION
The accounting system is a major qualitative information acquired in
almost every organization for and it therefore provides information for
the three broad purpose namely as internal reporting to managers for use,
in planning and control routine operation and non-routine operation,
formulation or major plan and polices and lastly the external reporting to
stock-holders, government, debenture holder and other outside parties. Therefore
the managers depends largely upon quality and quantity of data received. Thus,
information flows in the management information system too by influence the
effectiveness of decision making.
According to Hornaren (2014) the question of what accounting system to
buy, must focus on how decision and consequent benefit are going to be
affected. One must also ask what decision will result from accounting data and
what outcome will ensure from decision making. Accounting report, which are
financial model or company operations, model are useful because they provide
conceptual representation or realities, enabling the decision makers to
anticipate and measure the effect of alternative actions.
Decision-making is choosing among alternatives it occurs as managers
perform their planning and controlling function. A decision model is one, which
affect the performance of management planning and controlling functions, but
only to extent that management delegate when the model was constructed and
implemented the functions. In every organization, the accountants is the
quantitative expert, and to retain and improve his status, and also the
accountant should be aware of how the mathematical models may improve planning
and evaluating the quantitative sources of decision recommendation, as the
accountant is usually a member of the top management team in every organization.
According to Thranf (2014) general
stated that a model is defined as a representative of an actual object of
situation. A formal decision model measures predicted effects of alternative
action. However it is pertinent to note that accounting to the report of the committees on management
decision model may indicate a choice which is rejected by management because of
more dominant legal, sociological, psychological, political and other
considerations not included in the specific mode is only one input into a more
complicated decision model, which include quantitative as well as quantitative
dimension.
1.2 STATEMENT OF THE RESEARCH PROBLEM
Budgeting is an important tool in business organization some of these
organization have budgeting departments which is saddled with the
responsibility of preparing budget statement for each unit, department and
branches of the organization the department also monitors the execution of the
budget estimates with the purpose of ensuring that the budget target is
achieved in terms of revenue and that the expenditure does not exceed the
estimates, this is the aspect of budgetary control. Not much problem is
encountered during during budgeting process; major problems lies in the area of
budgeting control, the following problem are usually encountered in the
budgeting control.
i.
LACK
OF FLEXIBILITY: Some
budgets are prepared without adequate flexibility to allow for unexpected
situation, which may arise during the budget period they are so fixed and tight
that they become an end in themselves rather than a mean to an end, In short,
rather than serving as a means of controlling operations, the budget control
the manager.
ii. RESISTANCE TO CONTROL: Some managers regard budgetary control as unnecessarily
restrictive and an indirect way of controlling their authority. Rather than
seeing budget as a means of improving performance and achieving corporate
objective they regard budgeting as a witch-hunting exercise, they adopt a
protective stance on their budget center and resist any attempt to bring it
into harmony with other centers.
iii.
BEHAVIOUR
ASPECT OF BUGETING: The human
aspect of budgeting cannot be over emphasized the success of any budget
totally depends upon the goodwill and co-operation of the participants without
this, budget statement will become merely a paper exercise with no real impact
on the operation of the organization.
1.3 OBJECTIVE OF THE STUDY
The study is aimed at providing general review of investment decision
making processes in manufacturing companies this entail how the projects are
initiated, enalyed and by whom. Other objectives of the study include:
i.
To find out
our cash flow associated with various investment proposal are being estimated.
ii. To examine the various investment appraisal
techniques opened to management of a company.
iii.To determine the effect of taxation, inflation, risk and uncertainty on
investment appraisal.
iv. To ascertain whether there is an attributable the
critical justification for the use of various investment are achieve or are
just a product of some imaginations.
1.4 SIGNIFICANCE OF THE STUDY
This study will be most relevant to the management of organization in
determine the choice of investment project among various investment
opportunities or alternatives and secondly for any decision maker should at his
disposal, the best qualitative and
quantitative tool which are available, so that he may establish a frame of
reference for the decision past
literature on the research have been too general without going special
consideration to the bottling company and in fact, have been too
theoretical. The research is therefore intended for use by manager and
accountant especially in the bottling industry in implementation of
decision-making task in a more efficient manner and also to serve as a pointer
to further research on the topic.
1.5 RESEARCH QUESTION
In order to
guide and direct the study, the following questions were used:
i.
Can
budgeting planning, implementation and control be used as an effective tool for
revenue generation in a manufacturing company?
ii. Can proper budgeting implementation and effective
control be used to achieve a balanced budget in a business organization?
iii.Can effective budgetary planning and control be used to achieve
organizational objective?
iv. What are the
measures taken by the organization when there are variances?
v.
What are
the procedures established by the management to ensure that copies of finalized
budget are communicated to all staff?
vi. Does budgetary control actually guarantee goods and
reliable budget and can it be used to detect budget variance?
vii.
Can late
implementation of budget lead to wrong financial decision and loss of revenue.
1.6 SCOPE AND LIMITATION OF THE STUDY
This research is intended to cover the various cost accounting models
used as sources or tools for managerial decision making with participant
reference to model that are particular and applicable to the Nigerian bottling
company plc, Ilorin as well as its various branches all over the federation.
This research study would be limited
due to time and financial constraints of the Nigerian Bottling Company Plc
Ilorin and is hoped that any findings of the research would be applicable to
the other branches of the company and the bottling industry in general.
1.7 PLAN OF THE WORK
The structure of the research work is divided into five chapters.
Chapter one (the introduction) this contained general background to the study
(literature review) of the study will shed light on the work of deferent
author, researcher in related fields and review of every journal and literature
that related and relevant to the
research study. Chapter three (research methodology) of the study will show
method of data collections how they are going to be analyzed and quantified using chi square method brief
history of the case- study Nigerian bottling company will be discussed in this
chapter. Chapter four (data analysis and presentation) will contain data
presentation and analysis with particular reference to the case study Nigerian
Bottling Company this chapter will cover the application of every information
discussed in chapter two and three on the case study (NBC) of the research
work. Chapter five (summary of conclusion and recommendation) which is the last
chapter is going to summarize the research work, inferences will be drawn on
the research problem under study and based on the conclusions drawn,
recommendation will be made to the case-study (Nigerian Bottling Company) of
the research problem on what appraisal techniques to use with reason or criteria
for choosing such techniques.
1.8 DEFINITION OF THE KEY TERMS
This has been defined to suit the
context of this writing in order to avoid certain misconception that may
arise.
A. Cost; this is the amount if expenditure in carried on or attributable to a
specified thing or activity and at the simplest level. A cost is determined by
two components (the quantity and the price)
B. Cost unit; as defined by I.C.M .A, is a quantitative unit of product or service in
relation to which cost are ascertained whenever costing is coursed out, the
focus is to determine the cost resist of the product or service.
C. Cost Allocation; this is the changing of discrete and identification of item of cost
center of cost unit. It is the allotment of whole item of cost to center or
cost unit that is responsible fort its authorization.
D. Cost Ascertainment; This the identification of the right or
appropriate cost a factory is N70000, or the what is cost to pay the nurses
salary, it may be 25000 or the word cleaners may receive 15000 and doctors receive 35000.
E. Cost Absorption; it also refers to cost that has been a cost center by either allocation
or apportionment and absorbed into cost unit.
F. Cost Apportionment; This is the process of sharing commonly incurred
expenses proportionately where two or as more cost center are involved, based
on the amount of benefit each cost center derived from it.
G. Cost Control; This is an act of making necessary adjustment after comparing the
actual cost with a standard a targeted cost. Where the actual exceeds the
targeted cost a reduction in cost may become necessary.
H. Costing Center; as defined in the terminology it is a location, person or times of
equipment in respect of which cost unit for control purpose.
I. Cost Code; According to I.C.M.A is s system of symbol designed to applied to a
classified set of item to gives a brief accurate reference facilitating entry,
collation and analysis. The symbol may be mainly series of numbers or alphabet
or mature of both.
J. Fixed Cost; this is a cost that does not change with the change with the change in
the level of activity. It remains static over a period of time. Unaffected by
variations in the level of activity and volume of product.
Variable Cost; this is also changes
in the level of change in activity. Any increase or decrease in the volume of
production result in a proportionate change in cost.
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