TABLE OF CONTENT
Title Page i
Certification ii
Dedication iii
Acknowledgement iv
Table of Content v
CHAPTER ONE: INTRODUCTION
1.1
Background
of the Study 1
1.2
Statement
of the Problem 3
1.3
Objective
of the Study 3
1.4
Significance
of the Study 4
1.5
Research
Question 5
1.6
Scope
of the Study 6
1.7
Organization
and Plan of the Study 6
1.8
Definition
of the Key Terms 7
CHAPTER TWO: LITERATURE REVIEW
2.1
Cost
Control Techniques 9
2.2
Cost
reduction Techniques 14
2.3
Effective
Cost Control 16
2.4
Value
Analysis and Engineering 17
2.5
Appraisal
of Literature Review 18
CHAPTER THREE:
RESEARCH METHODOLOGY AND DATA ANALYSIS PROCEDURE
3.1
Population
and Sample Size 28
3.2
Sampling
Techniques 29
3.3
Method
of Data Analysis 29
3.4
Limitation
of the Study 30
CHAPTER FOUR:
DATA PRESENTATION AND DATA ANALYSIS 31
4.1
Data
Presentation 32
4.2
Data
Analysis 33
4.3
Findings 38
CHAPTER FIVE:
SUMMARY CONCLUSION AND RECOMMENDATION 40
5.1
Summary 40
5.2
Conclusion 42
5.3
Recommendation 43
Reference
CHAPTER ONE
1.1
BACKGROUND TO THE STUDY
One of
the means of measuring the performance of an organization management is its
efficiency. Efficiency relates to the optimum utilization of inputs to derive
the best achievable output. An efficient manager executes his responsibilities
with the last resources and maximum output to accomplish the organizational
goals.
An
important goal at a profit oriented organization is to operate at a profit.
However, if now effort to generate maximum revenue is not cost efficient, it
will only be more difficult to achieve the goal. As strategies are employed to
maximum returns on one hand, it is of equal importance for the management to
institute conscious and methodical programmes that would assist in controlling
and reducing the resources input in order the revenue will not be totally
consumed by astronomical expenses.
We
thus discussed the two techniques that could assist management to maximize cost
namely: Cost Control and reduction techniques for the purpose of this study. We
shall call them Cost Management techniques (CMS).
We
viewed Cost Control to be an application of costing to enable management to
compare actual cost with planned cost and to take any necessary corrective
action before it is too late.
Before
any control can be affected, standard or target of performance must be set
against with actual cost can be measured through this method inefficiency will
be revealed.
Cost
Control can also be viewed to be an exercise in good house keeping that is
avoiding a wasteful use of valuable resources and encouraging efficiency and
cost consciousness.
In
contrast, coat reduction programmer start with an assumption that cost levels
are too high, through coat control might be good.
Cost
reduction, therefore is a planned and positive approach to reduce expenditure.
These cost management techniques (C.M.T) could be utilized extensive by profit
oriented organization producing goods and services provided that the economic
and political climate is stable for growth.
1.2
STATEMENT OF THE RESEARCH PROBLEM
This
topic for this project is cost Control and Reduction techniques. Due to lack of
enough time the research work is average. In this case, the various researches
problem formulated are in question forms. These are
i.
What
is the historical background of Cost Control and reduction techniques?
ii.
What
are the reasons for recent cost control and reduction
iii.
Does
the recent cost control and reduction have any prospect for Kwara Property
development Corporation KWPC?
iv.
What
are the likely problem facing cost control and reduction direction to KWPC?
1.3
OBJECTIVE OF THE STUDY
The
research objectives of the Study, therefore to:-
i.
Identify,
I any Cost managements techniques currently employed in property development
Corporation.
ii.
Apply
Cost management techniques to the area of interest.
iii.
Determine
the optimal level of Construction Cost Nigeria.
iv.
Give
an overview of Construction Cost factors in Nigeria.
v.
Examine
the effects of constitution Cost information on Cost Management techniques
C.M.T.
vi.
Evaluate
the effects of delayed payment on the Construction Study.
1.4
SIGNIFICANCE OF THE STUDY
The
study will give more light on or be beneficial to the professionals like
architects engineers, Quantity Surveyors and Accountants. It will enlighten and
bring about improvements.
The
study will enlighten so many institutions to improve and not close down because
this is an era of sky rocketing prices and inputs and unlike in the past, many
commercial organization and finance houses have Closed down, below acceptable
capabilities due to high Cost of inputs.
To
survive therefore, it is not enough to deal with revenue aspect alone but also
to keep Cost an expense as minimal as possible.
The
study will also give us more insight on invaluable assistance of the research
work to Kwara State Property Development Corporation and other Commercial
Organization involved in construction work. Human wants are unlimited and
resource available are both disproportionately scarce and also have alter
native and competing uses. The situation is aggravated for a Corporated body
whose native now depend on the unstable and highly inflationary Nigeria economy
to compute with complex situation, the best use has to of scarce resources
available
1.5
RESEARCH QUESTION
The
research questions are basically derived from the purpose of the Study. Hence,
they are formulated from relationship between variable or effect of one
variable upon another. The focus of this study by research work is to identify
Cost Control and reduction techniques in Kwara State
property Development Corporation. Hence, in the course of the study effort has
been made to find solution to the following research problem.
i.
What
is the impact of Cost Control and reduction in Kwara State Property development
Corporation.
ii.
What
are the various Cost Control and reduction techniques used in the Kwara State Property
Development Corporation?
iii.
What
are the various problem associated with Cost Control towards Cost reduction?
iv.
What
are the benefits that accrues to Kwara State Property Development Corporation
through the adoption of Cost Control and reduction techniques
1.6
SCOPE OF THE STUDY
Firstly,
the Scope of this research work is limited to Kwara State
property development Corporation due to time constrain and unwillingness of the
respondent in Kwara State Property Development Corporation.
More so,
literature was reviewed on Cost Control and Cost reduction technique and it was
covered by the scope of the research work, despite of not going beyond the
limit.
1.7
ORGANIZATION AND PLAN OF THE STUDY
The
research work will be divided into five chapters.
Chapter
one will have the background of the study. Statement of the research problem.
Objective of the study significance of the study. Research Question, Scope of
the Study, Study Plan and Definitions of key.
Chapter
two will treat Cost Control, Cost reduction, Effective Cost Control, Value analysis
and Engineering and appraisal of literature review.
Chapter
three will discuss brief history of the case study modes of Data Collection and
Data Analysis techniques.
While
chapter four will contain Introduction, Data Presentation, Data Analysis and Findings.
Finally,
Chapter five will discuss the Summary, Conclusion and Recommendation.
1.8
DEFINITION OF KEY TERMS
COSTING: It is the techniques or a process
of ascertain cost. Controlling Cost this is due cost which can be influenced by
the action of a member of an organization and it is relevant to decision making
and very important is measuring operational efficiency.
BUDGET: is a financial and quantitative
statement prepared and approved prior to a defined period of time of the policy
to be pursued during the period for the purpose of attaining a given objective.
COST BEHAVIOR: in relation to volume of activities
is a measure of degree of response of a cost item to a small charge in the
level of activity.
COST CENTRE: it is a location person or item of
equipment in respect of which cost may be ascertained and related to cost unit
for control purpose.
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