EFFECTS OF COST MANAGEMENT ON THE PROFITABILTY OF NIGERIA INDUSTRIES (A STUDY OF SELECTED INDUSTRIES)

ABSTRACT

The  study  investigated   on the  effect  of cost  management   on  the profitability   of Nigeria    industries.  The major  objectives  of the study are to ascertain   the  level   of adherence   to  cost   management    practices   in   the  manufacturing    industries,   to determine   the  effects   of  various   costs   on  the  profitability    of  manufacturing industries  in Nigeria   and  to  determine   the  factors  that  affect  cost  management practices   in  manufacturing    industries.   To  achieve  the  objectives   of  the  study, survey research  design  method  was adopted.   The researcher  adopted  primary  data in getting the required  information.   The population  of the study is made up of 207 respondents  while   the sample  size is  made  up of 136  after adopting  Taro Yamane formula.   However,  a total number  of 136 questionnaires   were administered   to the respondents,   120 were  returned   while   16   were  void.   In  testing   the  hypotheses, multiple    regression    analysis    was  used.  The  findings   revealed   that  there   is   a significant   effect of cost management  on the profitability  of manufacturing  firms in Nigeria.   The findings  further  revealed  that there is  significant   relationship    between cost   reduction   and   the   profitability    of  ABSTRACT

The  study  investigated   on the  effect  of cost  management   on  the profitability   of Nigeria    industries.  The major  objectives  of the study are to ascertain   the  level   of adherence   to  cost   management    practices   in   the  manufacturing    industries,   to determine   the  effects   of  various   costs   on  the  profitability    of  manufacturing industries  in Nigeria   and  to  determine   the  factors  that  affect  cost  management practices   in  manufacturing    industries.   To  achieve  the  objectives   of  the  study, survey research  design  method  was adopted.   The researcher  adopted  primary  data in getting the required  information.   The population  of the study is made up of 207 respondents  while   the sample  size is  made  up of 136  after adopting  Taro Yamane formula.   However,  a total number  of 136 questionnaires   were administered   to the respondents,   120 were  returned   while   16   were  void.   In  testing   the  hypotheses, multiple    regression    analysis    was  used.  The  findings   revealed   that  there   is   a significant   effect of cost management  on the profitability  of manufacturing  firms in Nigeria.   The findings  further  revealed  that there is  significant   relationship    between cost   reduction   and   the   profitability    of  manufacturing    firms   in  Nigeria.    The researcher  recommends   that  effective   cost  control,   including  good  responsibility accounting  system,   should   be established    by all business  concerns  in  the country. The  researcher  further  recommends   that  cost  control   should  be  in  place   in  all departments,  most especially  the production   department,  in order to make sure that units of finished  goods are properly  accounted  for.firms   in  Nigeria.    The researcher  recommends   that  effective   cost  control,   including  good  responsibility accounting  system,   should   be established    by all business  concerns  in  the country. The  researcher  further  recommends   that  cost  control   should  be  in  place   in  all departments,  most especially  the production   department,  in order to make sure that units of finished  goods are properly  accounted  for.