Marginal Costing As An Essential Tool For Decision Making In A Manufacturing Company (A Case Study Of Rokana Company In Imo State)

ABSTRACT

This study was undertaken to empirically ascertain the role of marginal costing in decision making of manufacturing firms with a particular reference to Rokana industries ltd. Imo State. The study made use of primary data obtained through the administration of we/I structured questionnaires. The collated data were analyzed using frequency distribution and ordinary least square (OLS) Economic technique. The empirical results showed that there is significant relationship between product pricing and marginal costing application. It was recommended that manufacturing firms should base their output level and product pricing because it helps them know how to optimize profit, react to signals from the market and help them retain share of the market.