CHAPTER ONE
1.0 INTRODUCTION
Accountancy has been defined by GLAUTER and UNDERDOWN, in their book titled “Accounting theory and practice as “a reporting activity that forms part of any management information system. In this regard, accountings is often explained as sciences of activities that are connected and form successive steps starting with observing, the collecting, recording, analyzing and finally communicating accounting information to its users. The study of modern cost accounting yields insight regarding both accountants’ role and manager’s role in an organization because managers want to know how accountants measure performance and often depending upon accounting data for guiding their decisions. Cost accounting has a major purpose of accumulating the cost of an organizations products and services. This aspect is regarded as product costing purpose.
1.1 STATEMENT OF PROBLEM
A view shared by previous researcher on this topic that there has been a shortfall in the utilization of cost accounting information in some organization and their pricing policy decision making. It is right of this that this work attempt to suggest a good system which comprises a set of procedure, records and facilities that have to do with the systematic and routine compilation and dissemination of cost information and price determination.
AMONG THE PROBLEMS TO BE ANALYSED ARE:
(i) To highlight on management inadequate concern over proper pricing guide through cost information.
(ii) Necessary conditions for a costing system.
(iii) Evaluating the present state of the application of the cost information in the determination of price.
(iv) Appropriate basis of preparation of the cost.
1.2 PURPOSE OF STUDY
The purpose of this study will help to determine how cost accounting information is applied in an organization and how it is used in Price determination, what the researcher has learnt as theories is been put into practice in real life situations, relating to the cost accounting information and price determination. It help the researcher to see the practical application of the principles stated formally by the cost accounting and determining the cause of the short fall in its application and when applied, the advantages therein. It also helps to determine an appropriate condition and environment for prayer comparison and analysis of cost.