PRODUCTION COST CONTROL IN MANUFACTURING ORGANIZATION. A RESEARCH PROJECT MATERIAL ON ACCOUNTING
The main aim of this research is an attempt to verify the indiscriminate increase in the prices of commodities produced in this part of the country by manufacturing organizations and companies. This continuous rise in prices has attracted the attention of many citizens, mostly those who are ignorant of the adverse effect of this continuous rise in price on the citizens and the country economy.
This research paper will therefore aim at giving a comprehensive account of the control of cost in the production field with emphasis on the manufacturing organizations. The attribute of every organisation is the pursuit of a goal and this goal exists in different forms.
It is evident, therefore that every manufacturing organisation be it sole, partnership, corporation, among others has an objective and this primary objective is profit maximization. Other objectives such as social are purely secondary and solely depend on the profit.
Profit is the surplus or excess of total income over total cost during a specific period of time. It therefore follows that before any organisation can make profit they must exercise control over their production services.
There are others still under production and only the best ingredients are used for production in PRODA, Administration and staffing. Although the governing board has responsibility for general management as set out in the natural science and technology act 1980, the day to running of the institute is the function of the director of research.Administratively, the institute is organized into division science, engineering, ceramics, and administration.
The active divisions from the point of view of research and development functions are science, engineering and ceramics.In order that both research and development work and their production work are given equal emphasis each of these activities divisions is in turn organized into research units.
Production cost in manufacturing organizations is the aggregate of cost that is been accumulated by some natural classification and allocation so as to reflect the cost involved in the production of an item.
The accumulation of costs and allocation of cost are normally carried out using the three basic elements of cost namely;
c. Factory overhead