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Effect of Cost Control on Profit Maximization  

 

CHAPTER ONE

INTRODUCTION

1.1     BACKGROUND OF THE STUDY

 

          Cost control is a vital element in the management aspect of functional activities that covers all aspects of an enterprise.

          It was first performed in a routine manner by clerks, but with the advent of professional management skills, it has evolved in to a more sophisticated function with a far reaching effect on a company’s profit.

          This study will critically examine the constituents of cost management, such as production cost and control, purchasing cost and control, marketing cost and control, and other non-manufacturing cost and control.

          Various cost control techniques will also be highlighted to provide the management of Nigerian Bag Manufacturing Company a pool of casting techniques that will assist them in maximizing profit.

 

1.2     STATEMENT OF PROBLEM

 

          This research work is of immense importance to all organization. It tends to focus attention on the following areas;

1. In adequate allocation of the company’s’ budget in expressing company’s policy on programme.
2. In adequate / inaccurate yardstick for checking whether the services of agent distributors or middle men will be more economical than direct sales.
3. The company’s budget did not set accurate standard which performance can be measured against.
4. How to gain maximum utility from the staffs as a way of improving productivity and maximize profit.