The problems in the practice of standard costing and budgetary control system in the manufacturing firm,. A case study of flourier Nig border on how the cost associated with production can be minimized without reducing standard in the product manufactured or serviced rendered by the organization. The standard costing and budgetary control issue has bothered manufacturing firms in Nigeria over the years. The decision regarding to this rests with management.
The study is aimed understanding how flour Nig. Plc practice their Sandra costing and budgetary control with a view to offering some suqqestians on how they can become more efficient.
The research project is divided into five chapters:
Chapter one covers the statement of problem, the purpose of the study the research question and the statement of hypothesis. Other that are to be discussed include the scope, the significance the organization of the study and the limitations.
Chapter two covers the literature review of the subject. In the discussion, the such subheads treated are the origin, the nature and objectives and meaning of standard costing, variance analysis budgeting controls, computerized aspect of budgeting and human behavioral aspect were also discussed. Chapter three clears with the research methodology, its sampling, used was stated. In chapter four, we took care of the data collected by analyzing and presenting them in a systematic manner. Finally, chapter five clears with the discussions of finding in chapter four the condussion and recommendations.
REFERENCES
REVIEW OF RELATED LIERATURE
2.1 ORIGIN OF STANDARY COSTING
2.2 MEANING OF STANDARY COSTING
2.3 TYPES OF STANDARY COSTING
2.4 STANDARY COSTING IN PLANING AND CONTROLLING OPERATIONS
2.5 VARIANCE ANALYSIS
2.6 BUDQETARY CONTROLS
2.7 OBJECTIVES OF BUDGETING SYSTEM
28 ADVANTAGES OF BUDGETARY CONTROL SYSTEM
2.9 COMPUTERIZED BUDGETARY CONTROL SYSTEM
2.10 HUMAN BEHAVIOURAL ASPECT OF BUDGETARY
2.11 SUMMARY
REFERENCES
CHAPTER THREE
RESEARCH DESIGN AND METHODOLOGY
3.1INTRODUCTION
3.2 RESEARCH DESIGN
3.3 DESCRIPTION OF POPULATION AND SAMPLING PROCEDURES
3.4 QUESTIONNAIRES DESIGN
3.5 DATA COLLECTION METHOD
3.6 STATISTICAL METHODS IN ANALYSIS
3.7 SUMMARY
REFERENCES
DATA PRESENTATION AND ANALYSIS
4.1 INTRODUCTION
4.2 JABULATION OF DATA
REFERENCES
SUMMARY OF FINDINGS, CONCLUSION AND RECOMMENDATION
5.1 INTRODUCTION
5.2 DISCUSSION OF FINDING
5.3 CONCLUSION
5.4 RECOMMENDATION
5.5 SUMMARY
BIBLOGRAPHY
Most businesses use planning and budgeting procedures to prepare for the future. Manufacturing firms need to understand the relationship of sales revenue to product costs, selling expenses and administrative expenses as yearly as possible in product development. Therefore, the practice of standard costing and budgetary control system has been a crucial area of concern for manufacturing firms in Nigeria it is known that in this technological age, that for an organization to make a tremendous progress, there must be standards set in the various operational areas.
As a consequence, the importance of standard costing and budgetary control system in manufacturing firms cannot be over emphasized budgetary control assist the manufacturing firms to monitor their progress towards the pre-determined aims and objectives.
A standard costing system through its control process ensures an effective and efficient attainment of a company’s goal producing high quality products. It attempts to inform management of the pre-determined cost set before the product is manufactured or service rendered. Asechemie stated that one advantage of standard costing is the speed with which we know the cost of material used, because in standard costing we do not wait but record material etc used as soon as possible.
Standard costing serve management in cost reduction. They provide a means of communication between top management and line supervisors. Standard set goals, which help to develop cost consciousness in the employees. These standards are motivating fore to encourage the operators to improve their performance.
Batty 19975:9 defined standard costing as a system of accounting which is designed to show in detail how much each product should cost to produces and sell when a business is operating at a standard level of efficiency and for a given output. According to the definition given by the chartered institute of management accountants CIMA budgetary control on the other hand is the establishments of budgets relating the responsibilities of executives to the requirements of a policy and the continuous comparism of actual with budgeted results, either to secure by individual action the objective of that policy or to provide a basis for its Revlon.
Standard costing and budgetary control are interrelated because when standard costs have been determined, it is relatively easy to compute budgets for production costs and sells. When actual costs differ from standard costs the resulting differences cost variances provide a basis for control reporting.
Budgetary control is applied to the system management control and accounting in which all budgeted expenditure or income are compared with the actual results. Corruptive action follows immediately in order to arrest the variances.
This project on the practice of standard costing and budgetary control systems in manufacturing firms will be of immense benefit it both the organization and other researchers in this area of study.
It will enable us gain an understanding of what B actually happening among manufacturing firms in the private setter from the stand point of work also places emphasis on the need to define the objectives of the organization as a whole, and within this overall frame work to define the results which each department and its persona should active.
These targets should established not just for the budget period as a whole, but for budget control period. It goes also to reveal the extent by which actual results have exceeded or fallen short of the budget, to indicate through analysis or other measures of performances the reasons why actual results differ from these budgeted, and to establish the magnitude of differences.
It can be used as a basis of reporting on actual performances with various or other performance measures, a basis is provide for guiding executive action to correct adverse trends and to take full advantage of any beneficial trends which are revealed by the results. It will also create an awareness of providing a basis for the revision of the current budget, or to preparation of future budgets to provide a system whereby the resources of the organization are used in the most efficient way possible.
Where the activities of an organization are subject to seasonal or cylindrical variation budgetary control provides a means of establishing the organization activities.
The basic problems in the practice of standard costing and budgetary control system in the manufacturing firms border on how the cost associated with production can be minimized without reducing standard in the products manufactured or services rendered by the organization. Infect, there is the need to strike the balance between actual cost and budgeted cost. Therefore the problem arises as to the level of variance analysis adopted as policy by the manufacturing firm.
Manufacturing is the process of converting raw materials into semi. Finished or finished goods. Standard costing and budgetary systems are cost control techniques adopted in the achievement of production targets for the period.
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