PRODUCTION COST CONTROL IN
MANUFACTURING ORGANISATION
ABSTRACT
This research work is based on the
production cost control in manufacturing organization.
The study was motivated on how to control cost in
manufacturing industries in order to achieve the purpose of which the industry
is establish.
To solve the research problem the
researchers made use of only secondary source of data, since the guidelines for
writing the ND research work in banking and finance was restricted to secondary
source of data.
The research instrument used to collecting the data were
textbook, journal, magazine, newspaper. Etc.
Also, based on data collection form
secondary soruce, it is quite obvious that I have found out that for production
cost control to fully and well carried out, there should be combination of man
and material resources in efficient manner.
Also, that the need for cost control is very important in the sense that
it increase profitability of manufacturing firm.
Finally, I discover that may organization
neglect the issue of internal control system in cost control and thereby call
attention for immediate implementation of this in our manufacturing industry.
TABLE OF CONTENT
Title page ii
Approval
page iii
Dedication iv
Acknowledgement v
Abstract vi
Table of
content viii
CHAPTER ONE
Introduction 1
1.1
Background of study 1
1.2
Statement of the problem 3
1.3
Purpose/objective of the study 3
1.4
Significance of the study 4
1.5
Limitation of the study 4
CHAPTER TWO
Review of Related literature 5
CHAPTER THREE
Research Design and methodology 20
3.1
Sources of Data (secondary sources only) 20
3.2
Location of data 20
3.3
Method of data collection 21
CHAPTER FOUR
Findings 22
CHAPTER FIVE
Conclusion
and recommendation. 24
Bibliography 28
CHAPTER ONE
1.0
INTRODUCTION
1.1 BACKGROUND
OF STUDY
The main aim
of this research work is an attempt to verify the indiscriminate increase in
the prices of commodities produced in this part of the country by manufacturing
organization and companies. This
continuous rise in prices has attracted the attention of many citizens, mostly
those who have ignorant of the adverse effect of this continuous rise in the
prices on the citizen and the country economy.
This research
paper will therefore aim at giving a comprehensive account of the control of
cost in the production field with emphasis on the manufacturing
organization. The attribute of every
organization is the pursuit of a goal and this goal exists in different
forms. It is evident, therefore that
every manufacturing organization be it sloe, partnership, corporation, among
others have an objective and this primary objective is profit maximization
other objective such as social is purely secondary and solely depend on the profit.
Profit is the
surplus or excess of to all income over total cost during a specific period of
time. It therefore follows that before
any organization can make profit, they must exercise control over their
production and services.
There are
other one still under production and the best ingredients are used for
production in PRODA. Administration and Staffing. Although the government Board has
responsibility for general management as set out in the natural science and
Technology, Act 1980, the day to day running of the institute is the function
of the direct or research.
Administration,
the institute is organized into divisions science, Engineering, ceramics and
administration.
The activate
division form the point of view of research and development functions are
science, Engineering and ceramics.
In order,
both their research and development work and their production work be given
equally emphasis each of these activities division is in turn organized into
research units.
1.2
STATEMENT OF THE PROBLEM
Many
organizations operating in our country today try every effort to make use of
they break even in order to make profit, still al these efforts seems t be
worthless. They reduce their cost in
order to maximize as suppose to be, why do so many organization still not
breakeven, not to talk of making profit after all their efforts to control
cost?
Does it mean
that their cost control is not effective?
The researcher will give answer to these questions in his subsequent
chapters.
1.3 PURPOSE/OBJECTIVE OF THE STUDY
Some of the objectives of this research work is
i. To assess the various production cost
control techniques and effectiveness as well s the efficiency.
ii. To know some of importance
and need for cost control.
iii. To know cost control and reduction
Technique in manufacturing originations.
Iv To know the use of budgetary control system
manufacturing organization.
V To know the use of budgetary
control system in cost control
1.4 SIGNIFICANCE OF THE STUDY
This research
work as carried out by the research on production cost control in manufacturing
organization will be of great important to so many manufacturing firms in the
area of cost control in order to maximize profit. Also individuals who are interested in
entering into the business manufacturing will equal benefit from this project.
1.5 LIMITATION OF THE STUDY
The following
limitations were faced by the researcher and limit efforts in elaborating the
researcher work.
Finance: The researcher is a student with no souce of
income and has been discouraged from traveling to all the labour market in Nigeria to
collect dta for this study. She ahs
therefore chosen Enugu
metropolis because of proximity and ease of contract to the workers.
Time: This project work has just one semester time
limit. It would have been desirable for
a longer time to complete the topic and extend the coverage but it was not
possible.
Pressure from Academic
Work: The student
was jam-packed with other academic activities and at the same time writing this
research work and this brought little difficult in finishing this research work
on time.