THE IMPORTANCE OF COST ACCOUNTING SYSTEM IN MANUFACTURING INDUSTRIES.
[A CASE STUDY OF NORTHERN CABLE PROCESSING MANUFACTURING CORPORATION (NACACO)]
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- Statement of general problem
- Objective of the study
- Statement of Hypothesis
- Significance of the study
- Limitation of the study
- An overview of the organization
- Definition of cost accounting
- Standard cost introduction
- Variance analysis and classification
- Budget and budgetary control
- Marginal cost
- Break even point analysis
- Population and sample size
- Sampling technique
- Personal observation
- Justification of choice
Data analysis and presentation
- Cost accounting department
- Financial department
- Production department
- Output come of hypothesis
Summary, findings, conclusion and recommendation
Cost accounting is considered as the managerial planning and control activities furnishing management with the necessary accounting tools to plan, control and evaluate operation. The term cost accounting as however published by the institute of cost and management accountant is define as “the application of costing and cost accounting principles, methods and techniques to the science art and practice of cost control and the ascertainment of profit”. It includes the presentation of information derived for the purpose of management decision making.
The basic difference between a merchandized business and a manufacture is that merchant purchases merchandise in a ready – to sell condition whereas the manufacturer produce the good it sells. In a merchandising business the cost of goods available for sale is based upon the cost of purchase in a manufacturing business on the other hand the cost of manufacturing the finished goods, as a result of this, there is the needs for every manufacturing business to be cost conscious in the course of manufacturing goods.
The cost accounting system depends upon the purpose for which the management requires the information for many Purposes such as control, decision making and determination of price.
- STATEMENT OF GENERAL PROBLEMS
The production of items is not problem but knowing the cost involved during such production is the issue at stake. One just have to recover the investment committed in the production of an item through accounting for such cost and passing it to either the middle men or consumers Iclho pay for the items. This has created room for the existence of a production circle in most of our industries now. To account for the production of an items materials, labour and overhead must have their own share of cost which resulted to be the complete production of the production.
To this end, manufacturer find it littie bit difficult to adequately account for the production cost they incurred and not being able to recover from the item produced, he refinancing power of the organization concerned is reduced in one way or the other, therefore, the producer has to be conscious of cost incurred in the cost at a certain