COST ACCOUNTING AND CONTROL IN THE AGRICULTURAL SECTOR PROBLEMS AND SOLUTIONS. A CASE STUDY OF LIVESTOCK FEEDS NIGERIA PLC

CHAPTER ONE

INTRODUCTION

The importance of the agricultural sector in Nigeria economy is generally well known. The most public policy makers especially since independence in 1960, has expected the sector to satisfy the bulk, if not all, the food requirement of the country supply. Most of the agricultural raw material needed by the manufacturing sector, provide adequate employment and income to the farmers and investors as well as earn substantial foreign exchange for the country. Olieh (1984) shared the same view, before independence said “Agricultural products formed the major component of the country’s export. The livestock subsector is supposed to provide high quality rich in protein products. Ukpong (1993) conclude that the livestock sub-sector in Nigeria has been depressed for many years and its output declined by about 18.2 and 4.4% in 1982 and 1983. There is high cost of finished feeds, low value of naira needed or import of raw material and equipment, also government neglect and abandonment of the sector has led the nation to economic stagnation. The cost control will be used as a case study, since it has a great role to play in the production of animal feeds and concentrates in Nigeria.

BACKGROUND OF STUDY

Livestock Feeds Plc was incorporated in 1953. The company’s principle activity is the manufacture and marketing of animal feeds and concentrates. In other words, the company is basically engaged in poultry farm business, production of finished feeds for birds.

OBJECTIVE OF THE STUDY:

The cost accounting and control problems inherent in the production of finished fees of livestock feeds Plc. These objectives will enable the sector to return to the part of growth and profitability. 1. To know whether enough cost accounting information is generated by Livestock Feeds Plc. 2. To identify the cost control techniques adopted in the company. 3. To investigate whether line managers are involved in setting standard cost of production. 4. To ascertain whether standard cost are frequently reviewed by the company.