ABSTRACT
This research work was necessitated by the need
to highlight, the cost accounting and control problems inherent in the
agricultural sector and Nigeria economy with particular reference is the
production and animal fees and concentrates. This is with view of
efficiency and the achievement of organization goals.
The stuffy was done to ascertain whether enough
cost accounting information is being generated for managerial purposes by
Livestock Feed Plc. To identify the cost accounting techniques adopted by
the company, investigate whether line management are deeply involved in setting
standards frequently reviewed to meet the requirement of current
situations. On the basis of the above, related literature was viewed to
ascertain other writers view concerning cost accounting and control as it
related to production of goods.
Against this background, invaluable and
reliable discoveries were made. It was found out that the cost accounting
techniques of standard costing is adopted by the company and there is absence
of attainable standards line managers and specialists (such as accountants,
engineers etc) are not deeply involved in setting standard cost of production.
Also, standards are not reviewed in
semi-annually to accommodate current circumstances just as favourable variances
is not indicated.
CHAPTER
ONE
1.0 INTRODUCTION
The
importance of the agricultural sector in Nigeria economy is generally well
known. The most public policy makers especially since independence in
1960, has expected the sector to satisfy the bulk, if not all, the food
requirement of the country supply. Most of the agricultural raw material
needed by the manufacturing sector, provide adequate employment and income to
the farmers and investors as well as earn substantial foreign exchange for the
country. Olieh (1984) shared the same view, before independence said
“Agricultural products formed the major component of the country’s export.
The
livestock subsector is supposed to provide high quality rich in protein
products. Ukpong (1993) conclude that the livestock sub-sector in Nigeria has
been depressed for many years and its output declined by about 18.2 and 4.4% in
1982 and 1983. There is high cost of finished feeds, low value of naira
needed or import of raw material and equipment, also government neglect and
abandonment of the sector has led the nation to economic stagnation. The
cost control will be used as a case study, since it has a great role to play in
the production of animal feeds and concentrates in Nigeria.
1.1 BACKGROUND OF STUDY
Livestock Feeds Plc was incorporated in 1953. The company’s principal
activity is the manufacture and marketing of animal feeds and concentrates. In
other words, the company is basically engaged in poultry farm business,
production of finished feeds for birds.
1.2 OBJECTIVE OF THE STUDY
The cost accounting and control problems inherent in the production of
finished fees of livestock feeds Plc. These objectives will enable the
sector to return to the part of growth and profitability.
1. To know whether enough cost accounting information is generated by
Livestock Feeds Plc.
2. To identify the cost control techniques adopted in the company.
3. To investigate whether line managers are involved in setting standard
cost of production.
4. To ascertain whether standard cost is frequently
reviewed by the company.
1.3 THE SCOPE AND LIMITATION OF THE STUDY
The study will be centred on cost control problems inherent in the
agricultural sector of the Nigerian economy with particular reference to the
production of finished feeds for livestock. The researcher does not
intend to cover such areas as farming and animal rearing. This is considered in
a limitation, since the death of the researchers could lead to the death of the
research. Other limitation could be time, money. Also, absence of
willingness on the part of some individuals within the organization to provide
information on some operation of the company inhabited the progress of the
research. However, the presence of these difficulties, the researcher was able
to do great job, which can be validity relied on by any interested party.
1.5. DEFINITION
OF TERMS
ANIMAL FEEDS: This means the various productions
produced by the company such as finisher, starter and grower mash. It is
also referred to finished feeds.
AGRICULTURE: This
is taken to mean the production feeds for birds and concentrates.
MARGINAL COSTING:
This is a costing method whereby only variable manufacturing costs are
allocated to produces and included in the stock valuation.
DECENTRALIZED BUDGETING: This
is a process of budgeting whereby the various units are allowed fully
participation as regards in budgeting.
SYSTEM: This
is a recognizable whole made of components parts (departments) that works
together to achieve a common goal.
CENTRALIZED BUDGETING: This
means a budgeting system whereby the budgets are prepared by the head office
and gives to the plants of divisions within the organization to implement with
little participation from units.