CHAPTER
ONE
1.1
INTRODUCTION
The bottling industry
is presently undergoing a revolution worldwide due to the twin impacts of
deregulation and technological break through most company in Nigeria are quite
relatively operating on differentiated cartel because of the trend and
competitive environment. Under such conditions costing and management decision
process strategy suddenly become more vital tools to booster services, it
should be noted that such concepts of “Standard costing” and” management” all
about? Standard costing is a technique which uses standard for costs and
revenues for the purpose of control through variances analysis.
Management is an act
that coordinates all group effort. It does not only concerned with profit
oriented enterprise but an act of every human Endeavour’s be it product or
service wise.
Managing is essential
in all company as well as in all levels of organization in attainment of the
group goals.
The coca-cola Bottling Company
of Nigeria Plc can be traced briefly with that of united state of American
which came in to being in Nigeria in the year 1953. When Nigeria bottling
company set up it first plan in Lagos Precisely at Oyingbo but later move to
Apapa, it has an additional development to the existing companies in the area,
a contributed immersively to the socio- economic group of the country.
John Pembetion was the
investor of coca-cola in May 1883 being a book keeper, he designs the following
script that distinguishes the advertising and marketing activities, Robinson
also had excellent pen man ship. It was he who first script “coca-cola in the
following letters which has come the famous logo today. The soft drink was
first sold to the public of the soda fountain in Jacobs Pharmacy in Atlanta.
In 1887 another pharmacist,
a business man bought the formula for coca-cola from the investor and was one
of the America. Most popular fountain drinks how at the helm the coca-cola
company increased syrup sales by 4000% between 1890 and 1900. In April 23, 1985
the trade secret “new coke” formular was released, today products of coca-cola
company are consumed at the rate of more than one billion drinks per day.
The success of
coca-cola bottling company of Nigeria place gave birth to opening of some
branches like Port-Harcourt, Kano, Ibadan, Enugu, Benin and Ilorin which is
used as the case study. This success also brought the development of some
sister industries like delta Glass Company which supplies million of bottles
required to3 keep a large bottle company in operation. Also it help in the
receding of broken bottles in Ijebu Ode and Kano state which manufactures as
the Berum Plastic Company that makes the plastic creates for carrying bottles.
The coca-cola Nigeria
bottling company produce drinks such as coke, crest, bitter lemon, Schweppes Fanta.
Soda Water and Eva table water. The Nigeria coca-cola bottling company of
Ilorin unity plant is sited along coca-cola at unity bus stop Ilorin Kwara State.
The commission of that plant was in 1944 while production actually stated in
1995.
1.2
STATEMENT OF THE RESEARCH PROBLEM.
The statements of the
research problems facing standard costing as a tool for effective management
decision making include the following;
i.
What
do you understand by the word statement costing?
ii.
Do
you know the type and element of standard?
iii.
What
relationship do standard costing and budgeting have?
iv.
Is
there anything you know about management decision making?
v.
What
are the limitations of standard costing?
vi.
Is
there anything called variance in standard costing?
1.3
OBJECTIVES OF THE STUDY
The success of business
ventures depend largely on a well defined and clearly stated management
decision making because a sense of directions and focus as well spelt out. The
aim and objectives of this study are:
i.
To
highlight the concept of standard costing.
ii.
To
enumerate the type and element of standard cost
iii.
To
show the extend of standard costing in budgeting
iv.
To
know the relationship between standard costing and variance analysis as a tool
for management of standard costing.
1.4
JUSTIFICATION OF THE STUDY.
The research work is
undertaken in an attempt to identify the major contribution of standard costing
as an aid to management decision making. The findings and suggestions of the
write up will attempt to find a lasting solution to problems facing industries
and those who are already engaged in business. It will hopefully go a long way
in enabling industries to improve in their effort toward making Nigeria an
industrialized area and development economics management of the country.
1.5
SCOPE OF THE STUDY
Most people don’t know
the benefit accruing from the activities of companies which may be due to ignorance
as to what services are afforded by management. It does appeal to us to carry
the coronaries through reasonable recommendations that will improve on the
performance of companies. Therefore the purpose of this research work shall
restrict the study to the concept of standard costing. Importance and
limitation of managerial decision
1.6
LIMITATION OF THE STUDY.
There are always two
sides of a coin: the head and the tail. Therefore there is no undertaking
without a set back. In the case if this research work, the researcher encountered
some problems, the critical problem encountered which may infringe the
successful conduct of this research work of his magnitude demand much time and
effort on the part of the subject matter of the study in order to come up with
a viable and acceptable exposition.
Another problem has to
do with the non-challant attitude of the people towards the questionnaire
distributed. The attitude in their port could be helping matters despite the
promise by the researcher that the information provides will surely be used for academics purpose and
not for other things, this much information provided could be obtained.
1.7
DEFINITION OF RELATED TERMS
It ensures that the
readers understand the different terms in the work.
a.
Company – a legal entity.
b. Capital – money used to start business.
c.
Production
process of utilization into goods and services.
d. Prospects: – wealth.
e.
Cost
: Estimated amount
f.
Standard:
measure management: set of body that pay for the company.
1.8
PLAN OF THE STUDY
The study is divided into
five chapters. Chapter one which consist of the introduction, background of the
study, statement of the researcher problem aim and objectives of the study,
Justification of the study, scope of the study, limitation, definition or
related terms and plans of the study.
Chapter two contain
literature review, management pyramid elements standard and costing sheet,
variances analysis, importance and limitation of standard costing, costing
techniques cost centre and unit, method of costing and significance of costing
to managerial personnel
Chapter three, discount
the research methodology, source of data, sample method, size and questionnaire
design.
Chapter four expatiated
more on data presentation analysis and findings of research while chapter five
talks about the summary, conclusion and recommendations.