MARGINAL COSTING AS AN ESSENTIAL TOOL FOR DECISION MAKING IN A MANUFACTURING COMPANY FOR DECISION MAKING IN A MANUFACTURING COMPANY (A CASE STUDY OF ANAMCO ENUGU). A RESEARCH PROJECT MATERIAL ON ACCOUNTING
This report revealed the result of an investigation into the marginal costing Technique as an essential Tool for Decision Marking in a manufacturing company, with a particular reference to the Anambra Motor Manufacturing Company (ANAMMCO), Emene Enugu.This research offers the researcher the opportunity to study marginal costing as a tool for decision making as it is practiced in ANAMMCO. The report was articulated and systematically presented in five chapters. Chapter 1 Introduction: This chapter deals with the background of the study, the statement of problem, the objectives of the study, the Significance of the study, the scope of the study, the limitation of the study and also the definition of terms used in marginal costing and lastly the statement of Hypothesis. Chapter 2 Review of related literature: In this chapter the works of other writers and authorities in the subject is reviewed. It deals with marginal costing, the principles of marginal costing, marginal costing and decision making in an organization, (Acceptance of special order, make or by decision etc are some of the management decision making), the contribution margin theory marginal absorption costing, the marginal costing and profit breakdown analysis and decision making and finally Advantages and disadvantages of marginal costing.
Research Design and methodology: This chapter tends to overview the entire subject of study, it equally explains the sources of data for the project work, sample method used, the method of investigation and finally the problem which the researcher encountered in data collection process.
Data presentation and Analysis: This chapter treats an overview of the subject, an analysis of responses and the testing of Hypothesis earlier stated in chapter 1.
Findings, Recommendation and conclusion: This chapter is the summary of the researcher’s findings his recommendations and lastly the conclusion of the project work.
Decision-making has become a main concern to any organization, and efforts are being made by management to make sure that best decisions are made. Therefore, this study investigates the effectiveness and efficacy of marginal costing as an essential tool for decision-making. To determine this, the fundamental objectives of the study among others are
(a) An evaluation of the marginal costing technique towards ascertaining the effeteness and efficiency.
(b) Finding out any inherent deficiencies in its application.
(c) To determine the criteria for cost control and analysis.
(e) And how, management decision-making is aided under the technique.