MARGINAL COSTING AND ORGANIZATIONAL PERFORMANCE IN NIGERIA BREWERIES PLC

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                                                             

Get the Complete Project