EVALUATION OF FACTORS AFFECTING THE CONCEPT OF PROFITABLE AS A GUIDE TO POLICY DECISION

EVALUATION OF FACTORS AFFECTING THE CONCEPT OF PROFITABLE AS A GUIDE TO POLICY DECISION

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CHAPTER ONE

INTRODUCTION

  • Background of the study
  • Statement of the problem
  • Purpose of the study
  • Research question
  • Statement of hypothesis
  • Significance of the study
  • Scope and limitation of the study
  • Definition of terms

 

CHAPTER TWO

REVIEW OF RELATED LITERATURE

  • Cost
  • Uses of cost data
  • Methods of inventory control
  • Costing methods
  • Costing techniques

 

Chapter THREE

RESEARCH DESIGN AND METHODOLOGY

  • Area of the study
  • Population of the study
  • Sample and sampling determination
  • Instrument of data collection
  • Validation of the instrument
  • Reliability of the instrument
  • Administration of research instrument
  • Method of data analysis

 

CHAPTER FOUR

DATA PRESENTATION AND ANALYSIS

 

CHAPTER FIVE

FINDINGS, CONLUSION AND RECOMMENDATIONS.

  • Findings
  • Conclusion
  • Implications
  • Recommendations

 

Bibliography

Appendix

 

CHAPTER ONE

INTRODUCTION

1.1  BACK GROUND OF STUDY

According to Harper (1977) the concept of profitability can be defined as the concept which provides management with alternative course of action in accordance with the various degrees of profitability stating clearly in relevant cost account form individual projects which enables management to select the most profitable.

Most of the policy decision of manufacturing industries are generally directed towards profitability. Policy decisions made under this concept has a direct effect of increasing and enhancing the general profitability of the manufacturing industries concerned.

The origin of this concept can be traced back to the era of industrial revolution. Prior to this era, industrial were run as family concerns but with the industrial revolution, most business grew from the usual family arrangement to large groups. Resources were pulled together and handed over to other people to manage for the owner’s.

Naturally, resource owners must expect a profitable returns from the investments, this urgent obligations forced management to seek ways of carrying out their activities so as to make profitable returns to the resource owners. Investment grew in all dimension until the first and second world wars, one would have expected that after the world war industrialization would have been abandoned but as we have seen today, this was fortunately far from being so. Rather a large number of manufacturing industries grew in importance and also in complexity all in a bid to meet the demands and standard set by the developed countries.

Enough quantity of materials had to be bought and at the same time later which is a very vital commodity had to be allowed to operate in a conducive environment so as to enjoy the benefits of hiring labour prior to commencement or an expansion the manufacturing industry must move with the changing technology, meet it social responsibilities, operate under government stipulations, pay tax as and when due and meet the expectations of the shareholders.

High administrative cost, cost of changing technology, fierce competition, scarce resource, falling economy, cost of government restrictions, the need for maximization of shareholders wealth, poor capitalize etc must be accommodated and adjusted in such a way that total cost of manufacturing a product will not only be less than sales renew but give a good profit margin.

This stipulation of operating under many uncompromising variables gave rise to the need for policy  decision on such things as siting an industry.

  • Expansion of an existing industry
  • Introduction of a new product
  • A change in production design
  • Sell or process further
  • Close down.
  • The nature of this research project requires theoretical approach and analysis which will cover the three dimensional focus of the research, the research focus on the three major areas are;
  • The economical factor affecting the concept of profitability as a guide to a policy decision.
  • The Endogenous factor affecting the concept
  • The political factors.

These three combine to give a broader view of the factor affecting the concept of profitability as a guide to policy decision.

The theoretical orient action of what best provides the researcher the framework for analyzing the factors affecting the concept of profitability were.

  1. Theory of location of industry which state that nearness to raw

Materials and available of labour affects the profitability of manufacturing industries. The location of extractive industries for instance depend on where raw materials are to be found. Also mining industries depend on geological, surveys. Agricultural industries depend on side condition and climate. Where the required raw materials are heavy and bulk the industry will be set up near source of raw materials in order to reduce cost.

  1. Theory of nearness to market: Bulking or heavy goods are expensive to transport. Base on this, the theory therefore states that such goods be produced near the market.
  2. Other general economic factors which includes industries requiring thermal heat need to be near local mines e.g. steel industries.

Tensa (1979) said that the endogenous theory which best suite the purpose of the research is the theory of operation management which is of the view that workers have the same objective with that of management which will ensure a responsible attitude towards organization decision making procedure.

  1. On the political factors, the instability of government, restrictions on certain industrial activities were also theories which helped to find out factors effecting the concept of profitability
  2. The theory of marginal costing were in dispensation tools for research.

 

1.2 STATEMENT OF THE PROBLEMS

This research work titled an evaluation of factors affecting the concept of policy decision is meant to solve among other things following problems

  1. a) Effect of policy decision on the profitability concept in some selected industries.
  2. b) Factors of production as a necessary condition for setting up an industry needs to be available.
  3. c) How Government policies affect the concept of profitability.


1.3 PURPOSE OF THE STUDY

The purpose of this study includes the following

T

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