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Title: IMPACT OF STANDARD COST ON COST OF PRODUCTION IN THE NIGERIAN
MANUFACTURING FIRMS
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Authors: Patrick OLOGBENLA ,Nigeria
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Abstract: The study examined the impact of standard cost on cost of production of some manufacturing
firms in Nigeria. A sample of 147 respondents from about 26 manufacturing firms is used for the
analysis. Both descriptive and inferential statistics techniques are used to analysis the responses
of the respondents on various questions that bothers on value relevance of standard cost in cost
control in their originations. Firstly the results shows that contrary to some opinions that
standards cost techniques is no longer in vogue, the study finds out that about 85% of the
manufacturing firms sampled are still applying standard cost techniques to cost control in their
various organizations. Again the study shows that the decision of these manufacturing firms to
continue to use standard cost is because of its effectiveness in minimizing the cost of raw
material as well as overheads cost of the organization. However, application of standard cost to
personnel cost appears not be in vogue. It is recommended that manufacturing firms should
emulate these firms that are minimizing their cost via application standard cost and also find a
way of applying it to labour cost efficiently |
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