BREAK-EVEN THEORY AND ACCOUNTING AS A MANAGEMENT DECISION A TOOL

(A CASE STUDY OF NIGERIAN HOECHST PLC)

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THE NATURE AND CONSEQUENCES OF JUVENILE DELINQUENCY IN NIGERIA: A STUDY OF ENUGU NORTH LGA, ENUGU STATE

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COMPLETE MATERIAL  COST  N2,500 Or $10.  FRESH  PROJECT MATERIAL  COST 50,000 NAIRA FOR UNDERGRADUATE, OTHERS 100,000 -200,000 NAIRA.

THE NATURE AND CONSEQUENCES OF JUVENILE DELINQUENCY IN NIGERIA: A STUDY OF ENUGU NORTH LGA, ENUGU STATE

Foreign Transaction For Dollars Payment :
Bank Name: GTBank
Branch Location: Enugu State,Nigeria.
Account Name: Chi E-Concept Int’l
 Account Number:  0117780667. 
Swift Code: GTBINGLA 
Dollar conversion rate for Naira is 175 per dollar. 

ATM CARD:  YOU CAN ALSO MAKE PAYMENT USING YOUR ATM CARD OR ONLINE TRANSFER. PLEASE CONTACT YOUR BANK SECURITY FOR GUIDE ON HOW TO TRANSFER MONEY TO OTHER BANKS USING YOUR ATM CARD. ATM CARD OR ONLINE BANK TRANSFER IS FASTER FOR QUICK DELIVERY TO YOUR EMAIL . OUR MARKETER WILL RESPOND TO YOU ANY TIME OF THE DAY. WE SUPPORT CBN CASHLESS SOCIETY. 

OR
PAY ONLINE USING YOUR ATM CARD. IT IS SECURED AND RELIABLE.

form>DELIVERY PERIOD FOR BANK PAYMENT IS  LESS THAN 24 HOURS

CALL OUR  CUSTOMERS CARE  OKEKE CHIDI C ON :  08074466939,08063386834.

AFTER PAYMENT SEND YOUR PAYMENT DETAILS TO

08074466939 or 08063386834, YOUR PROJECT TITLE  YOU WANT US TO SEND TO YOU, AMOUNT PAID, DEPOSITOR NAME, UR EMAIL ADDRESS,PAYMENT DATE. YOU WILL RECEIVE YOUR MATERIAL IN LESS THAN 2 HOURS ONCE WILL CONFIRM YOUR PAYMENT.

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CHAPTER ONE

INTRODUCTION

1.1     Background of study                                               1

• Historical backgrounds of Nigerian

Hoechst plc                                                              2

1.3     Statement of problems                                   4

1.4     Objective of study                                         5

1.5     Significance of study                                               5

1.6     Hypothesis and research questions                6

1.7     Scope and limitation of study                        7

1.8     Definition of terms                                        8

 

CHAPTER TWO

REVIEW OF LITERATURE

2.1     Literature review                                            10

2.2     Theoretical framework of studies                   18

2.3     Model development                                                 24

2.4     Tools of management accounting                  48

2.5     Classification of decision                               49

 

CHAPTER THREE

RESEARCH DESIGN AND METHODOLOGY

3.1     Introduction

3.2     Research approach                                         51

3.3     Sampling design and population size             52

3.4     Source of data                                                          53

3.5     Interview questions                                                  54

3.6     Method of data analysis                                 54

CHAPTER-PRESENTATION, ANALYSIS AND INTERPRETATION OF DATA

4.1     Analysis of data and interpretation       58

4.2     Hypothesis testing and proofing                    63

 

CHAPTER FIVE 

SUMMARY OF FINDING. CONCLUSION AND RECOMMENDATION

5.1     Summary of findings                                               68

• Conclusion
• Recommendation

Bibliography

Appendix i

Appendix ii

CHAPTER ONE

 

INTRODUCTION

 

• BACKGROUND OF STUDY

The success of a business is generally attributable in great measure of the ability of its management personal to cope with probable conditions of the future.  Short  range as well as long-term plans must be made accomplished through sound management evaluation.  However, many aids have been controlling and co-ordinating the function of their business.  One of the tool which encompasses vital and needed information in guiding companies profit path is the Break-Even theory.  This is an extension of marginal costing; basically.  It is concerned with the point at which revenue and costs intercedes, hence the term “Break – Even”.

Break-Even system is a simple and easily understandable method of picturing to the management the effect of changes in volume on profits.  It predicts the effects of managerial actions today on future profits and company survival.  Business people do not view costs outputs and profits may be affected by their actions.  With the aid of Break-Even theory, they will be able to understand more and data revealed by the Break-Even analysis.  This system involves the marshalling of the cost – volumer – profit data and other data to guide manager in its day-to-day decisions.  Some of the data are best seen in a chart form for management to get a perspective view of the profit structure.

Moreover, at the beginning of the century a planning tool was developed by WALTER RAUTENSTRAUCH called the Break-Even chart.  This development made a major contribution as a management aid in profit planning, forecasting and decision-making. The concept show the significance in a firm between it’s costs, volume and relationship between the costs, illustrate the relationship between the  cost, that-the selling price is constant irrespective of the volume.

 

1.2     HISTORICAL BACKGROUND OF NIGERIA HOECHST PLC

          On the 18^th of December, 1963 the company was formed under the name “Hoechst Nigeria limited”.  The company was registered as a private limited liability company  with an authorized share capital of $10000 divided into 100 ordinary shares of $1 each on the 10^th of January, 1964.

August 4^th, 1971 the PVA plant at Ikeja commissioned for use.  The major and company sold their 40% shareholding to E.O Ashamu and sons (holdings) Ltd.  The same day the name of the company was change to “Nigerian Hoechst.

The authorized share capital was increased to N2 million by the creation of additional 600,000 ordinary shares of N2 each in 1977.  On October, 1978 the paid – up capital was increased to N3 million by public issued of N1 million which implies that the whole authorized capital of the capital  issued and fully paid-up.  A, year later, Nigerian Hoechst shares were quoted on Nigerian stock Exchange at 30K per share of 50k.

The pharmaceutical factory and central warehouse at Ottah was commissioned on November 4^th 1982.  Three years after, the authorized share capital on the company was increased from N10 million to N15 million while the paid-up capital increases from N7 million to N10.5 million by bonus issue of one ordinary share for every two ordinary shares held.  In 1991 the authorized share of the company was increased from N15 million to  N25 million by the creation of additional 20 million ordinary shares of 50k each and paid-up capital increases from N14 million to N17.5 million by bonus issue of one ordinary share for every four ordinary shares held.

Nigerian Hoechst Plc has been engaged in pharmaceuticals and industrial chemicals for years.  The pharmaceutical factory is located at Otta while the PVA (Industrial chemical Division) is located at Ikeja.  Among their pharmaceuticals in market are the reformulated Daga,  Tabalon (an anti-rheumatic analgesics), fastaquine (a malaria preventive), Tarivid and Lasix etc.

However, Nigerian Hoechst Plc is also engaged in high quality textile dyes, veterinary products, herbicides and paints pigments.  The registered office is situated at Ikeja.

 

1.3     STATEMENT OF PROBLEMS

The research is borne out of the belief that Break-Even accounting technique is very vital to any form of business organization.  The analysis can be made for various conditions to reveal profitable, less profitable and unprofitable proposals; it is important to note that it brings home to  management. Dramatically the basic need to bring to light and the necessity of the significance of controlling costs and increasing in  sales will not solve the problems and not be used as anacea for profit.  Management in the cause of analyzing the company data in disclosing the company’s future profit structure few have the knack of quickly calculating the effects of alternative course of action and such