THE IMPACT OF STANDARD COSTING ON PROFITABILITY AND MANAGERIAL EFFECTIVENESS OF A MANUFACTURING INDUSTRY A CASE STUDY OF FERDINAND INDUSTRIES LIMITED, URULLA IDEATO NORTH LOCAL GOVERNMENT AREA OF IMO STATE, NIGERIA. A RESEARCH PROJECT MATERIAL ON ACCOUNTING
This research work will treat in detail the impact of standard costing on profitability and managerial effectiveness of a manufacturing industry. It will also take into account what standard cost does and the check it provides or control such that exceptional profit oriented goal performance can be achieved and on the reverse, adequate punishment to be exercised for bad performance.Chapter one of this work is going to discuss the brief history of the case under study, statement of the problem, purpose of study, significance of the problem, scope of the study, limitations of the study, assumption of the study.In Chapter two, the researcher will deliberate on the standard costing and overview, characteristics of standard costing, advantages and disadvantages of standard costing, essential features of standard costing, standard cost card, types of standard costing, setting standard, revision of standard etc and the areas standard costing helps in improving management efficiency.Chapter three will consider design and methodology, selection of data and analysis, presentation and data analysis, test of hypothesis and interpretation of result.Finally, chapter five will contain the summary of findings, conclusion from the study, recommendations and suggestions for further research.
The impact of standard costing on profitability and managerial effectiveness of a manufacturing industry. The standard cost reveals the goals, spur actions, and provide check or controls such that exceptional profit oriented goal performance can be achieved and on the reverse, adequate punishment to be exercised for bad performance. Standard costs cause appraised to be made over production facilities and from management intentions and capabilities and is a first step in strength and weakness appraisal.There also led to the preference of standard costing to other methods with the development of standard of standard costing system in 1920s, it was brought into the accounting system that total variances might be accumulated as well as detailed variances.It is believed that standard costing helps management to plan for future, and if any justification is required for this project on the effects of standard costing on profitability’s and managerial effectiveness of a manufacturing industries.Firstly, the financial management should penetrate into every cranny of the enterprise and indoctrinate all management in their working habits. Secondly, cost should be given the maximum attention while emphasis on the effects.Finally, since revenue less cost gives balance profit, the profit should be increase as it is what industry is aiming at.