CHAPTER ONE
INTRODUCTION
Background of the Study
Cost accounting in a specials branch of accounting that serve in both external and internal. In external reporting, cost accountants compute costs that are required for the financial statement and tax report in internal reporting, they collect data that can be used in the solution of a particular management problem.
Cost accounting provides cost information for easy management process that is providing cost information for decision making, performance evaluation control and analysis of problems that are facing or many face an organization into meet up with goals of cost accounting. Certain cost systems have overtimes been developed, one of which is standard cost system.
Standard costing can thus be designed to shown in relations, details how much each products cost to produce and sell at a given level of output and efficiency. Any difference standard cost and actual cost that the operation has been efficient or inefficient, this difference is known as variance and would assume a positive value if the operation has been effective. The process of computing the amount and isolating the cause of variances between actual cost and budgeted cost is known as variance analysis. Variance is an integral or component part of standard costing. Standard cost through variance analysis can also be used for inventory control, cost control and performance evaluation.
Fig project was conceived and designed in the 1970’s civic work started shortly after incorporation in 1980 and was commissioned on August 1985. At conception, Fig was to start “Fig lager beer” followed by “Shersy drink” and about three year later by non-alcoholic malt drink and finally a range soft drinks. Adequate provision for these was made in the plant design and procurement. The company commence production on the month of August 1985, with the introduction lager beer. Fig lager beer in the market, the company was producing at percentage capacity level before the attacked on product which was called “costing” otherwise known as excess foaming. This occupation has a devastating effect on the company on soda and management the other side this led to housing cleaning and the entire management was dropped.
The company now operates by the appointment of the executive directors from the existing due to financial problem. The company have about seven directors.
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