1.1 BACKGROUND OF STUDY
The reality of modern business management in a free enterprises economic system in the level of competition among all enterprises where only the fittest enterprise survive. The motive for maximization of profit in business and quest for wealth creation being in Hogue, management continues to remain under increasing obligation to improve its share of market, its assets, its credit worldliness and its overall potential. These in turn require an improvement in the quality of decision therefore in order to responds effectively to the challenges of time, management requires good factors in business decisions.
The research work is a real attempt to investigate into the principle and practice of marginal costing as an essential tool for decision making in manufacturing companies using Anambra Motor Manufacturing Companies (ANAMMCO) as a case study. The study will critically examine the following:- – The condition for analyzing cost into fixed and variable components. – How the cost are normally controlled – And how management decision is ended under the techniques An appraisal is necessary in order to determine effectiveness and efficiency of the management accounting technique. In carrying out this research work, data was gotten from questionnaire, information and analysis of data using the percentage method to analyze the responses elicited from respondents. Also the personal observation method were used together with relevant information from libraries.