PRODUCTION OF HAND CREAM OIL USING PINEAPPLE EXTRACT AS FRAGRANCE
ABSTRACT
This is set out to determine the production value of hand cream oil extract and its cost volume profit analysis in business decision making the constraints experienced as well as the assessment of service coverage. In chapter one and two, the products which faced with a lot of problems but when these are addressed, the cost volume profit analysis are not adequately interpreted to management non availability of records and lack proper knowledge of the users in a manufacturing hand cream products and market frauds. There is therefore need to embrace the identity the extent and nature of an accounting services to the business segments in their quality especially on the areas of finance on the business. In chapter three, the researcher restricted himself to a reasonable scope believe to give a representative of the case under study. Primary and secondary were used for data collection while interviews, personal observations, and questionnaire distribution played a vital role to the regard percentages and the chi-square were used to test validity or otherwise used the hypothesis formulated. In chapter four, data were analyzed and the following findings were made. Lastly in chapter five, products are being ensured on it proper sales in other to avoid lost.
CHAPTER ONE
1.0 INTRODUCTION
Due to industrialization in recent years, manufacturing firms have been increasing. They are more complex technologically and complete among each other for survival of various products on hand cream production. It can also be that high growth rate occurs among them due to one level of efficiency in production. The complexity and completion has been enhanced by increasing technology, use of expertise, computerization and raw material acquisition. There are also government economic growth, cost control, to mention but a few.
Among this control measures, cost control is significantly controlled by firm, since its managerial function which helped to reduce cost reproduction and to again advantage over other firms in the same industry. But some question may arise, how can a firm be faced with control and management of cost decides on how many unit to employ? At what price will the product be disposed of?
1.1 BACKGROUND OF THE STUDY
The management of every business organization has two major objectives to pursue in order to ensure the continued existence of the business. The first one is to stay solvent which is to be able to pay its debts as the fall due. Profit making and solvency are not the only objective of manufacturing firm. There are others which help them in achieving the primary objectives. This includes protecting the business environment creating new improved product. it is clear that a business cannot hope to accomplish these objectives unless it meets the two test of survival operating profitability and solvent.
Manufacturing of hand cream oil a is part of an organization in Obika industry. The manager is expected to make rational decision that will be directed towards the achievement of profitability of some product which has been produce and is usually supplied to a decision maker to assist him in choosing an alternative in the manufacturing of other products in other to meet up the market demand.
1.2 STATEMENT OF THE PROBLEM
Considering the naira and its purchasing power, the researcher found out that manufacturing of hand cream oil are faced with heavy cost involvements during the process of manufacturing. The incurred cost has the implications in his overall problems which call to mind the cost problem. How can this cost problem be alleviated?
The economy is not the same today as it has been in the past decade, the exchange rate of naira to foreign currencies and the price fixed for manufacturing goods and services greatly affect the profit to be made on the part of the incurred, it will posed a problem hence.
In the past decade, manufacturing firms has been increasing their volume of production, but today, the cost of inflationary trend which prompted the increase in cost of production negatively affected the volume of output. As such firm had been forced out of business while the continuing ones find it difficult to produce or maintain their formal volume production.
The result is that the volume produce had reduced and reduce and this pose a volume problem that is capacity under utilization. The next issue; how can these three words cost volume and profit be understood and intermingled?
1.3 OBJECTIVE/ AIMS OF THE STUDY
The aims and objectives of this study is to find out the reason why some hand cream oil do not use cost volume profit analysis, in planning and control during make decision making.
Again, where some manufacturing companies that produce hand cream oil undergoes market depreciation in the market and how to meet the people demand with other competitors. It is also the objectives for the study to know why some hand cream oil product and its cost volume profit analysis end up not combating cost implications problems.
In the objectives, also to analyze the basic assumption of CVP analysis to know their effect on products especially those of the manufacturing sector.
1.4 RESEARCH QUESTION
Are three lacks of consistency in issuing policies?
Is the management efficient and effective?
Are there fraudulent practices in the industry?
What gives rise to high bad debt injudicious lending in the industry?
What method of employment is obtainable in the banking sector?
1.5 SIGNIFICANCE OF THE STUDY
My intention in carrying out this study is to make little contribution to the already over screeched issues. The major significance so to say is to educate, highlight and to bring to focus the basic products mostly in hand cream oil products which some product has been encountering fakes around the market. I noticed a near absence of information or facts on figures about the hand cream production will bring high increase of fake products around the country. Most writers try to concentrate on the liquidity of the operation but I want to compare the liquidity level of products against its profitability and then bring out their relationship. Based on this knowledge and then bring out their relationship. Based on this knowledge the intends to make a more balanced study on this aspect hand cream production, via profitability and liquidity.
1.6 SCOPE OF THE STUDY
Due to the inherent problems in Nigeria, the CVP analysis has been directly and indirectly affected. It is with this in mind, the researcher looks into the underlined consideration of CVP analysis in the manufacturing of hand cream products with particular reference to Obika industry limited Nkpologwu. In order to have the various approaches of the CVP touched.
1.7 LIMITATION OF THE STUDY
It is due to finance that the researcher limits himself to the use of Obika industry Ltd. In carrying out then project work, despite the numerous manufacturers all over the country. The distance between the researcher and the case company posed serious hitch to the smooth carrying out of this project.
1.8 DEFINITION OF TERMS
COST VOLUME PROFIT ANALYSIS (CVP): This is a systematic method of examining the relationship between changes in volumes (output) and changes in total sales revenue, expenses and net project. As the model of these relationships, it simplifies the real word conditions that a firm will face is it subject to a number of the understanding assumptions, irritations and a powerful tool for decision making.
COST VOLUME PROFIT CHART (CVPC): A chart that helps in the enrichment of understanding of the inter relationship of all factors affecting profit especially cost behaviours patterns over ranges of volume.
FIXED COST (FC): The cost that fixed in total amount over a period of production, but varies per unit of output with the level of production changes.
VARIABLE COST (VC): The cost that directly affects production by varying the level of production but constantly retrain fixed per unit of output.
SEMI VARIABLE COST (SVC): The cost that have both fixed and variable cost features. It fluctuates as changes occur with relevant range but not in direct proportion to the changes.
CONTRIBUTION MARGIN (CM): It is the product profit of sales minus all variable costs.
BREAK EVENT POINT: The point of activity where total cost are equal and the firm neither making profit and loss.
MARGIN OF SAFETY: this is the excess of budgeted sales over the break even sales volume
PROFIT VOLUME RATIO: This is the relationship between contribution and sales value.
GROSS PROFIT RATIO: This is the commonest measure of profitability. The gross profit margin measure the efficiency with which the firm products each unit. Its products by discounting all operation.
TIME SERIES ANALYSIS: This approach does an evaluation of the firms operations over a period, the purposes being to evaluate the firm performance over this specific internal of time.
PRODUCTION DEPARTMENT: A unit in which operations are performed on the part or product and whose cost are not further allocated.
NET PROFIT RATIO: The net profit margin measures the percentage of sales remaining after expenses including taxes have been deducted.
PRODUCTION OF HAND CREAM OIL USING PINEAPPLE EXTRACT AS FRAGRANCE