Effect Of Cost Reduction On The Performance Of Manufacturing Companies In Nigeria (A Study Of Nigerian Bottling Company Coca- Cola Enugu)

ABSTRACT

The study examines the effect of cost reduction on the performance of nianufactiiring companies

in Nigeria (a study of Nigerian Bottling Conipanv Coca-cola Enugit,). 7/ic rc',vearclier ac/opted

longitudinal research design and non-probabilistic sampling techniques in i/ic course of i/ic'

study. The data /1r i/ic study emerged from secondary sources. The annual reports of Coca-Cola

Nigerian Bottling Company in Nigeria were accessed in extracting re/c vomit in/urination required

for the study. The population oft/ic study is twenty-three (23), while the sample size is twenty-

three (2$) between I993-20/6. The variables used ii'ere, cost of sales as 1/ic independent

variable, 'ehile 1/ic dependent variables were Pro/It Afier Tax (P/i 7,), Sales V?.1umne ('SV,), d!fldl

return on asset ('1/04). Several statistical tools such as lab/es, percentages, (i/Ui si/lip/c

regression niodel were employed, in i/ic aiu'lll'ses of (la/a 0/1(1 testing of i/ic flr,nu/atcd

hypotheses. SPSS version 20 was used in running 1/ic analyse.s. hi'o out of t/ic three null

hypotheses were rejected, ii'/ulc two out of the three alternativL' Iivpoi/icsc's ii'ere accc'ptecl. lime

studi' revealed that there is a sign f/lcant positive relationship betii'eemi cost rec/liclion and tIle

per/1i-mance of manufacturing industries in Nigeria. The study recommends among other things

that, nianaçcrs of mnanufictitring organization should increase their e/fhrts reducing all the

necessary costs in their companies, ranging from variable cost, o'cr/ic'ads and operating cost, so

a.c to maintain a continuous increase in their aftc'r tax pro/li of their companies; Evpc'rts should

be cniploved in the cost 'center of manufacturing firms, while the old employees should be

retrained to cf/l'ctii'ely utilize 1/ic fi -m 's resouices and that iheres Jiould he rooni for continuous

reappraisal, re-evaluation and controlling of all cqntrollable ost o/thc'firm.