The Importance Of Cost Accounting System In Manufacturing Industries
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The Importance Of Cost Accounting System In Manufacturing Industries
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THE IMPORTANCE OF COST ACCOUNTING SYSTEM IN MANUFACTURING INDUSTRIES.

[A CASE STUDY OF NORTHERN CABLE PROCESSING MANUFACTURING CORPORATION (NACACO)]

 

Chapter one

        Introduction

  1. Statement of general problem
  2. Objective of the study
  3. Statement of Hypothesis
  4. Significance of the study
  5. Limitation of the study
  6. An overview of the organization

Chapter two

Literature review

  1. Definition of cost accounting
  2. Standard cost introduction
  3. Variance analysis and classification
  4. Budget and budgetary control
  5. Marginal cost
  6. Break even point analysis

Chapter three

        Research methodology

  1. Interview
  2. Population and sample size
  3. Sampling technique
  4. Personal observation
  5. Justification of choice

Chapter four

        Data analysis and presentation

  1. Cost accounting department
  2. Financial department
  3. Production department
  4. Output come of hypothesis

Chapter five

        Summary, findings, conclusion and recommendation

  1. Summary
  2. Findings
  3. Conclusion
  4. Recommendation
  5. Appendix
  6. Bibliography
  7. Reference

            
CHAPTER ONE

1.0   INTRODUCTION

Cost accounting is considered as the managerial planning and control activities furnishing management with the necessary accounting tools to plan, control and evaluate operation. The term cost accounting as however published by the institute of cost and management accountant is define as “the application of costing and cost accounting principles, methods and techniques to the science art and practice of cost control and the ascertainment of profit”. It includes the presentation of information derived for the purpose of management decision making. The basic difference between a merchandized business and a manufacture is that merchant purchases merchandise in a ready – to sell condition whereas the manufacturer produce the good it sells. In a merchandising business the cost of goods available for sale is based upon the cost of purchase in a manufacturing business on the other hand the cost of manufacturing the finished goods, as a result of this, there is the needs for every manufacturing business to be cost conscious in the course of manufacturing goods. The cost accounting system depends upon the purpose for which the management requires the information for many Purposes such as control, decision making and determination of price.

 

  1. STATEMENT OF GENERAL PROBLEMS

The production of items is not problem but knowing the cost involved during such production is the issue at stake. One just have to recover the investment committed in the production of an item through accounting for such cost and passing it to either the middle men or consumers Iclho pay for the items. This has created room for the existence of a production circle in most of our industries now. To account for the production of an items materials, labour and overhead must have their own share of cost which resulted to be the complete production of the production.

To this end, manufacturer find it littie bit difficult to adequately account for the production cost they incurred and not being able to recover from the item produced, he refinancing power of the organization concerned is reduced in one way or the other, therefore, the producer has to be conscious of cost incurred in the cost at a certain period of time the financing  of the project plan becomes adversely affected or ever not possible.

             

  1. OBJECTIVE OF THE STUDY

The aims and objective of this study are to evaluate the cost accounting system, which brings out the real situation and existence of an organization. It is aimed at the determining the level of adequacy of cost accounting in the organization’s production activities. Through evaluating the system, the efficiency or inefficiency of such system will come to light which will create opportunity for discussing the ways by which an organization can account for cost of production adequately.

Without excluding certain cost incurred during the production. The study is aimed at providing solution to the problems of process cost accounting in industries which one way or the others do affect performance within the industry. It’s aimed at analysis the relevant of cost accounting system an industry and providing solution weaker system.

      

  1. STATEMENT OF HYPOTHESIS  
  1. Alternative Hi – effective use of cost accounting as a means of control in manufacturing industries cannot minimize cost – Un11Ho – effective use of cost accountings as a means of control manufacturing industries cost minimize cost – UU! IHO effective use of cost accounting as a mean of control.

 

  1. Alternative – an efficient costing system helps an undertaking to ascertain it’s cost of operation. 
  2. SIGNIFICANCE OF THE STUDY

The significance of the study can be reviewed in different perspective. The study serve am importance toward the writers programme as a part of the Kaduna polytechnic requirement which enable the completion of the national diploma programme.

 

  1. LIMITATION OF STUDY

Limitation of study are the constrains that restricts the writer from elaborating more on the project. In other  words, they are restriction encounter by the writer in course of writing his project, which are beyond his control. The study was made based upon the presence of some restrictions. It will have been more them what it is but due to the constraints, this is what the writer was able to achieve. The major obstacle is the co-operation of respondent quite a number of responses were made but not to the extent of warranting a through knowledge of the organization’s activities as a result, the study unable to meet the writer’s objective. The writer was faced with financial constraint and as a result could not go round getting more information for writing the project. This to some extent hampered the study.

 

Further more, availability of time for the research work was also a constraint to the study. This is due to the fact that the most writers time was spend in attending lectures writing semester test and assignment. 

     

  1. AN OVERVIEW OF THE ORGANIZATION

Northern cable processing manufacturing company limited (NOCACO) was incorporated in June with the aim of supplying vehide assembly plant with locally made cable and wires. The company’s equity share capital were distributed 40% the Nigeria share holders and 60% to the foreign Partners from Germany. The above distribution was due to the technical nature of the activities to be carried out to satisfy the schedule III of the enterprises promotion decree. The firm started with strength of 96 staff at the commencement of production, the firm now employ over 550 staffs and having the recognition as one of the most important cable manufacture in the northern Nigeria producing in accordance with national and international standards. NOCACO is correctly producing cable of about 400 different types. These cable including the house wiring cables. The insolated aluminum services cable, aluminum overhead line which is produced breed and steel re-enforce as well, the copper underground cables immured and un-armored as well as flexible cable fastening for the automobile industry and or the assemblers of air condition fridge and fretters. The firm principal factor of performances. Is the quality of its products. As a result, the company places a high premium on the quality of its products it designs and produce high quality of its products in accordance with national and international standard such as Nigeria industrial standard (NIS). International Electron – TECHNICAL COMMISSION (IEC). British standard and German Industrial standard to specific customer requirement .

 

The firm carries out rigorous quality control test on its products at every stage of the production process rather – then at the first inspection, so as to maintain the high standard throughout the length of conductor of cable.The high quality maintenance in the organization can be proved the award worn by the company during one period or the other, the award are:

Nigeria industrial standard silver award, winner of PVC insolated (non armoured) electric cable for power of lighting and also hold the ordinary award on aluminum conductor.

Correctly, NOCACO has won the Nigeria best cable and wire production. The company is located in the heart of the Northern State of Nigeria Kaduna. Head office and factory is located along Marchibi road, Kakuri Industrial estate Kaduna.                    



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