TABLE OF
CONTENTS
Title
page
Certification
Dedication
Acknowledgement
CHAPTER ONE
INTRODUCTION
1.1 Statement of the problem
1.2 Objective of the study
1.3 Significant of the study
1.4 Scope of the study
1.5 Research methodology
1.6 definition of terms
1.7 Plan and organization of the study
CHAPTER TWO
LITERATURE REVIEW
2.1 Cost control and cost reduction
2.2 Cost classification
2.2.1Direct and indirect cost
2.2.2Fixed and variable cost
2.3 Cost control
techniques
2.3.1 Planning, budget and budgetary control
2.3.2 Standard costing and variance
2.4 Cost reduction techniques
2.5 Where cost reduction is needed
2.5.1 Direct cost
2.5.2 Overhead
References
CHAPTER THREE
RESEARCH METHODOLOGY
3.0 Introduction
3.1 Population of the study
3.2 Sampling Design and size
3.3 Source of data
3.4 Data collection instruments
3.5 Method of data analysis
3.6 ProfileS of okin biscuits limited, Offa.
CHAPTER FOUR
PRESENTATION AND DATA
ANALYSIS
4.0 Introduction
4.1 Data presentation
4.2 Data analysis
CHAPTER FIVE
Summary,
Recommendation and conclusion
5.1 Summary
5.2 Recommendation
5.3 Conclusion
References
CHAPTER ONE
INTRODUCTION
The success that any producer may record in selling
his goods or services profitably is likely to depend upon his ability to
control his cost and upon the extent to which he can keep them below the
selling price imposed upon him by competition.
Therefore, cost control can simply be
defined as the regulation, limitation or confinement of cost.and it can also be
defined as the regulation by management action of the cost of operating an
undertaking ,particularly where such action is guided by cost accounting.
It covers the control of materials usage
and prices of wages cost separating the effect of efficiency from rates of pay,
or maintenance and service cost, and all other items of indirect expenditures.
In an organization it is an act of
making necessary adjustments after comparing the actual cost with a standard or
targeted cost the control process include the steps of establishing standards
and taking corrective measure.
Studies dealing with potential cost
control and various adjustments to which may results in cost control are
therefore very essential for improving the efficiency with which the conduct of
any business is performed, such a resultant improvement can be of immence
benefit to both the marketers and the altimate consumers of the products of the
business.
Effective cost control consists of two
aspects they are operational cost control consists which has to do with type of
control,which exist in the very small
firms where the sole owner could personally control cost through personal
observation and direct supervision of operation.Accounting cost control on the
other hand involves creating a sound system records keeping which will
establish accountability for cost and the employment of current, pertinent and
concrete accounting and statistical reports to reveal how people who are
responsible for cost are discharging their responsibilities.
1.1 STATEMENT
OF PROBLEM
This project is set out to examine the problem of
the existing small scale industries, a case study of Okin Biscuits Limited
Offa, Kwara state.
Smalls scale industries have common problems
nationwide, but some of the major one that is being faced by Okin biscuit
limited Offa will be discuss in this research.
Problem of marketing their problem
products is one of the problems facing the organization. Because there are some
other industries with the same products but better marketing strategies are
been put in placed.
Lack of
capital and low sales is another problem that is facing the organization.
Another problem is inadequate trained
manpower since one of the major aims of a privately owned industries is to
maximize profit, they find it difficult to engage in sufficient and adequate
trained personnel. They tend to manage the few at hand, hence there is insufficient
technical advice as there are inadequate technical training facilities for
staff and these could lead to poor quality products in some cases.
1.2
OBJECTIVE OF THE STUDY
i.
To find out the
production process of the industry
ii.
To find out the
problem facing the industry and how to remedy them.
iii.
To find out the
occupational importance of the industry in forms of employment provision.
iv.
To find out the
benefit of the industry in terms of their production.
1.3 SIGNIFICANT
OF THE STUDY
i.
The study will
go a long way to help small scale industries to improve their profitability.
ii.
This study will
help the management to know the causes of increase or decrease in profit making
iii.
The study will
also be of tremendous importance to small scale industries to know cost control
and cost reduction techniques.
iv.
The study will
help to indicate source of was wastages either of time, materials or the usage
of machineries.
1.4 SCOPE
OF THE STUDY
The study will focus on cost control and cost
reduction techniques that is being used by the management to improve the level
of profit with particular reference to Okin biscuits limited, offa.
1.5 RESEARCH
METHODOLOGY
The method used in the research work is based on
primary source which cannot of both the oral interview and questionnaire.
1.6 DEFINITION
OF TERMS
The following terms are defined so as to bring out
their meanings and to distinguish them from the ordinary usage.
i.
Budget:
the institute of cost and management accountants (ICMA) gives the following
definition in the terminology.
Budget: This is a financial or quantitative statement prepared and approved
prior to a defined period of time. It provides a focus for the organization, aids
the coordination of activties and financial and/or quantitative plan of operation
for a forth coming accounting period.
ii.
Budgetary control:
This is a system of controlling cost which includes the preparation of budgets,
coordinating the departments and establishing responsibilities, comparing
actual performance with that of budgeted and actual upon results, to achieve
minimum profitability.
iii.
Controllable and uncontrollable cost: Controllable cost is defines as those cost that are
directly influenced by a given manager within a given period of time.
Uncontrollable cost on the other hand are cost that can not be influenced
by a given manager within a given period of time.
iv.
Cost control: This
is the guidance and regulation of operating cost by management action. It also
involves of methods of controlling cost within a pre-determined target cost
control action lead to excessive spending.
v.
Cost reduction: This
is an active, dynamic concept which attempts to extracts more from the factors
of production without loss of effectiveness. Cost reduction activities are
planned effort to reduce expenditure.
vi.
Fixed cost: This
is a cost which is incurred for an accounting period and which within certain
output limits tends to be unaffected
by the function in the level of activity.
vii.
Variable cost: This
is defined as cost which varies with the level of activity.
viii.
Limiting factor: This
are factors which influence must first be assessed in order to ensure that the
functional budgets are reasonably capable of fulfillment
1.7 PANS
AND ORGANIZATION OF THE STUDY
This project work comprises of five (5) chapters;
chapter one of the projects deals with the introduction of the study which
comprises of the following:
-
Statement of the
problem, objective of the study significant of the study, scope of the study,
research methodology, definition of terms and finally plan and organization of
the study.
-
Chapter two
treats the current literature review which includes cost control and cost
reduction, direct and indirect cost. cost classification, fixed and variable
cost, cost control techniques, planning, budget, and budgetary control;
standard costing and variance, cost reduction techniques, where cost reduction
is needed, direct cost overhead.
Chapter three highlights the research methodology
which consists of introduction, population of the study, sampling sign and
size, sources of data, data collection instruments, method of data analysis and
profile of case study.
Chapter
four discuss the presentation of the results, which consist of capitalization,
cost control techniques area where cost reduction are concerned, sources and
causes area where cost reduction are concerned, sources and causes of
unnecessary cost, wastes and deposition.Action taken to reduce waste, cost
reduction techniques,effect of cost control and reduction and lastly programmes
on the activities of the case study.
Finally
chapter five throw light on the findings, summary, conclusion and
recommendation.
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