ABSTRACT
This study focused on the Marginal Costing and Organizational Performance in Nigeria Breweries Plc. Marginal costing techniques is an important tool for making managerial decisions to ascertain the most appropriate technique to be used in presenting costing information by management accountants to the organization stakeholders and evaluating the extent to which marginal costing affect the setting of pricing method. Relevant data were collected from both primary and secondary sources. Questionnaire was the main source of data collected, instrument employed, while data from various relevant publications constituted the sources of secondary data such as the questionnaires administered were sixty (60), chi-square was used to analyze the data. Two hypothesis were tested: 259>9.488 which shows that marginal costing techniques is the best techniques for short term decision making while the second hypothesis tested gave 248.6 > 9.488 which indicates that strict adherence to marginal costing technique enhance the profitability in manufacturing company. Based on the findings the study established that the marginal costing technique is one of the key aspects of the management accountant responsibilities. The management accountant ascertain whether the technique contributes to high quality decision making which help in reporting on marginal costing techniques to Nigerian Breweries Plc, and the extent to which reliance can be placed on the technique. The overall objective of any organization is to maximize profit and maximization the wealth of its shareholders. Based on the findings and conclusion arrived at in this study, its recommends that the practicing of marginal costing techniques identify relevant cost and provide information to management on effect of cost and revenue of charges in volume of output in the short run and to absorbed into product cost along with variable cost.
TABLE OF CONTENTS
Contents Pages
Title Page i
Certification ii
Dedication iii
Acknowledgement iv
Abstract v
Table of Contents vi
CHAPTER ONE: INTRODUCTION
1.1 Background of the Study 1
1.2 Purpose of Study 4
1.3 Research Questions 4
1.4 Statement of Hypothesis 5
1.5 Significance of Study 6
1.6 Organization of the Study 7
1.7 Limitation and Scope of Study 7
1.8 Definition of Terms 8
Reference 10
CHAPTER TWO: LITERATURE REVIEW
2
2.1 Introduction 11
2.2 Application of Marginal Costing – Make or Buy Decision 22
2.3 Cost Behaviour 24
2.4 The Treatment of Fixed Costs 28
2.5 Marginal Costing Techniques Versus Absorption
Costing Technique 32
2.6 Application of Marginal Costing Techniques 33
2.7 Decision Making with Limiting Factors And
Product Mix 35
2.8 Benefits of Marginal Costing 36
2.9 Problems of Marginal Costing 37
2.10 Current Literature Based on Each Relevant Variable,
Model and Theory 38
2.11 Basic Concept of Cost Accountancy 40
2.12 Cost Accounting 47
2.13 Contribution Margin 56
2.14 Historical Background of Nestle Nigeria Plc 58
References 62
CHAPTER THREE: RESEARCH METHODOLOGY
3
3.1 Introduction 63
3.2 Research Design 63
3.3 Re-Statement of Research Questions 64
3.4 Re-Statement of Research Hypotheses 64
3.5 Population of the Study 65
3.6 Sample and Sampling Technique 65
3.7 Research Instruments 66
3.8 Methods of Data Collection 67
3.9 Analytical Tools 67
3.10 Reliability of Instrument 68
3.11 Validity of Instrument 68
CHAPTER FOUR: DATA PRESENTATION AND ANALYSIS
4
4.1 Introduction 69
4.2 Analysis and Interpretation of Data 69
4.3 Testing of Hypotheses and Interpretation 83
4.4 Discussion of Tested Hypotheses 85
CHAPTER FIVE: SUMMARY, CONCLUSION AND
RECOMMENDATION
5
5.1 Summary 86
5.2 Conclusion 87
5.3 Recommendation 87
5.4 Suggestion for Further Studies 89
Bibliography 90
Questionnaire
