COST CONTROL AND THE PROFITABILITY OF MANUFACTURING COMPANY (A CASE STUDY OF CHAMPIONS BREWERIES PLC)

ABSTRACT

High operating costs have really affected many manufacturing company. Thus, cost control and the profitability of manufacturing company using Champion Breweries Plc as a case study was examined. Descriptive survey research design was adopted in this study. Population of the study was made up of the senior staff, totalled 42. Taro Yamane’s formula was used to determine the sample size of 38. Instrument for data collection was questionnaire. Findings revealed that cost control increases profit margin, increase return on capital and show the efficiency of management performance.  Recommendation was made that the company should provide a cost control centre to take the responsibility of standard costing and manager should take appropriate actions based on the information to the report.     

TABLE OF CONTENTS

Title Page 

Certification        –               –       –       –       –       –       ii

Dedication –       –       –       –       –       –       –       –       iii     

Acknowledgements     –       –       –       –       –       –       iv     

Abstract     –       –       –       –       –       –       –       –       v     

Table of Contents       –       –       –       –       –       –       vi

List of Tables      –       –       –       –       –       –       –       vii-ix 

CHAPTER ONE

INTRODUCTION

1. Background of the Study     –       –       –       –       1-3
   1. Statement of the Problem    –       –       –       –       3-4
   1. Objectives of Study     –       –       –       –       –       4
   1. Research Questions    –       –       –       –       –       4     
   1. Significance of the Study     –       –       –       –       5     
   1. Scope and Limitations of the Study       –       –       6     
   1. Organization of Study –       –       –       –       –       6     
   1. Definition of Terms     –       –       –       –       –       7-9   

End Notes

CHAPTER TWO

REVIEW OF RELATED LITERATURE

2.1    Introduction       –       –       –       –       –       –       11

2.2    Concept of Standard Costing        –       –       –       11-12       

2.3    Step in Cost Control    –       –       –       –       –       12-13

2.4    Cost Structure on Profitability       –       –       –       13-15

2.5    Effective Cost Editing Strategies to Increase

Project Margin    –       –       –       –       –       –       15-16

2.6    Standard cost and Budgeting Technique       –       –       16-17

2.7    Profitability         –       –       –       –       –       –       18

2.7.1 Concept of Profitability –       –       –       –       –       18    

2.7.2 Measurement of Profitability         –       –       –       –       19    

2.7.3 Selling Price       –       –       –       –       –       –       19    

2.8    Cost Control Application       –       –       –       –       20    

End Notes

2.9    Cost Control and Education  –       –       –       –       20    

CHAPTER THREE

RESEARCH METHODOLOGY

3.1    Introduction                         –     –       –       –       24           

3.2    Design of the Study    –       –       –       –       –       24    

3.3    Area of the Study       –       –       –       –       –       24-25       

3.4    Population of the Study       –       –       –       –       25

3.5    Sample Size and Sampling Technique – –       –       25

3.6    Instrument and Method of Data Analysis       –       26

3.7    Data Analysis Technique      –       –       –       –       26    

CHAPTER FOUR

DATA PRESENTATION, ANALYSIS AND INTERPRETATION

4.1    Introduction       –       –       –       –       –       –       27    

4.2    Data Presentation and Analysis    –       –       –       28-31       

CHAPTER FIVE

SUMMARY, CONCLUSION AND RECOMMENDATION

5.1      Summary of Findings –       –       –       –       –       32    

5.2      Conclusion         –       –       –       –       –       –       –       32    

5.3      Recommendations              –       –       –       –       33    

References   

Appendix

CHAPTER ONE

INTRODUCTION

1.1  Background of the Study

Cost and profit in business undertaking form part of what determines the financial position of a business concern. Since management is concerned with profitability which is a measure of business performance, especially in a manufacturing concern, the need for higher sales will arise and this will facilitate the need to increase production capacity, which is turn brings about increase in cost.

Brumbaug (2008: P3) opined that corporate bodies should watch the cost and the profit will take care of itself. The implication is that cost should be controlled rather than embarking on unscientific cost reduction that may translate to lowering the quality of product.

PAYMENT