The dynamic of business performance, the role of cost management in Nigeria will be examined in terms of effective cost management. Practical business decision – making involves cost to the extend to which mangers manifest warned modes of operating in their organizational role. This study intended to examine how Nigeria manager see the essence of business performance improvement in their firms. How do they perceive cost? Exploratory research method was adopted in this work with the instrument of data collection being questionnaire, collective interview, journals textbooks and their publications. The project work begins with introduction and subsequent and review of important literature which focused on business performance, the role of cost management. Most organization in Nigeria do not plan ahead and only deal with events as they occur. It thus seems that they are wide gap between the theories postulated and their application by Nigeria business. In some cases, adduce government policies business concerned geared towards cost reduction. Overall improvement in their business performance the role of cost management.
TABLE OF CONTENTS
Table of content vi
CHAPTER ONE: Introduction
Background of the study 1
Statement of the problem 3
Objective of the study 4
Scope/Delimitation of the study 4
Research Hypothesis 5
Significance of the study 5
Organization of the Study 5
Limitation of the Study 6
Definition of Terms 7
Background of the Company under Study 9
CHAPTER TWO: Literature Review
Analysis of Business Performance 11
Performance Report 11
The Tools for Performance Analysis 12
Accounting Measure of performance 14
Non-Accounting Measure of Performance 20
Essentials of a Budgeting System to Cost Management 20
Business performance Improvement Through Budget Administration 22
Types of Budget 23
Target Level of Performance 24
Measurement for Improvement Business performance 23
CHAPTER THREE: Research Methodology
Research Design 26
Sampling Techniques 26
Population of the study 27
Method of data analysis 27
Research Instrument 28
CHAPTER FOUR: Data Analysis, Presentation and Interpretation
4.1 Introduction 29
4.2 Data Analysis 29
4.3 Data presentation 30
4.4 Testing of Hypothesis 30
4.5 Uses of Budgetary Control 32
CHAPTER FIVE: Summary, Conclusion and Recommendations
5.1 Summary 33
5.2 Conclusion 35
5.3 Recommendation 36
Background of the Study
With the dynamic and sophistication in the management of business in contemporary Nigeria, one would think these challenges will be greatly met in part through the instrumentally of cost management. However, the above lastly wish being put to practice by some organization and even when it has been established.
No conscious effort is made to mobilize the necessary resources and create a conducive environment to make the system work. Any business form in whatever form and size have an objective to accomplish every section or goals to pursue which one tailored towards achieving the overall objective of the organization. In other to achieve the goal set by the management. There is the need to established a form plan of action which will provide the organization with a sense of directory and to work towards the realization of the set target. An important management tool that provides the sense of direction and formalized the pans of the organization is cost. If the organization has no sense of direction it is not far from grouping in the dark. Success in any business organization has to be worked for by the management paying attention to all phases of operations. The relevance of government in any business organization is being provided with quantitative management expression of plans through cost control. The planned activities of the organization are controlled by contemporary actual performance with the cost. This is achieved through the framework of performance passed by increased modern business. There is a constant used form management to be more conscious and cost conscious in their business.
Whatever the level of uncertainty a business entity may face, there is need for planning form obvious. The benefit will outweigh the cost. Many company haste derived by engaging techniques of cost management tools create for the confidence of creditors institution so that credit would be extended to them without consciously putting in place it work. This is made a scope-goal of the system of which the ills of the light of the above that this study is uncertain and aimed at establishing the importance of cost management in order to raise the level of profit planning.
Also the fact that the more emphasis needed to make the more the level of awareness and in addition, the business community needed to be more cost conscious in order to meet the difficulties posed by the challenging government regulations. Customers need economic situation and technological advancement. This project therefore attempt to look at the prospect by cost management.
Statement of Problems
Cost management in the organization is the fundamental instrument for monitoring the flow of resources within business organization. It requires review of hanger practitioners in modern day business arrangement. Perhaps, no time is more important than to stress the sense of cost management.
In daily affairs of the business, for one thing almost all large public sector concerned in Nigeria today are experiencing ongoing privatization scheme with the ownership structure moving to investors. The performance of stock divided pay out become very important issue which all boiled down to the profitability of the business. Furthermore, in the past years, the discomforting trends discernible from customers and practitioners in the beverage industry is a process where increases are in cost continue to out pose generated revenue. The simply translates into mounting heavy marking lying variable personnel. Going by the trends, it is obvious that business organization can no longer afford to post pone consideration effective cost till the need arises business managing in the 1990s and beyond has assures a highly vocative dimension thus the ability of a firm to budget control financial resources will separate the owners from the losers in preventing economic structure reform in Nigeria.
A cost therefore should be seen as the amalgamation of various function areas in business firms. The contention of the project therefore is that cost management should be constructed with appropriated techniques is an essential profitability in an organization.
Objectives of the Study
The major objective of this research work is to try provide significant ways in which the amount of business failure can be reduce and also to provided foresight in business activities.
This project is aimed at bringing to the render the relevance and prospect offered by cost management irrespective of the level of uncertainties surrounding the business in order to create more conscious awareness of the fact that management toil will not work unless a conducive environment has to be created for the management.
Scope of the Study
This study will be limited to those that are relevant for the purpose of this research. This study focuses on Guinness Nigeria Plc.
The hypothesis of this research is divided into two known as null (Ho) and alternative (Hi). The hypothesis which the null hypothesis were rejected then, the alternative are accepted and vice versa.
The hypothesis is to be tested as follows
Hi: Cost management contributes to business performance.
Ho: Cost management does not contribute to business performance.
Significance of the Study
The significance of this study is to be alit to ascertain the significance of cost management in business performance. It is specific found and contribution to efficiency in business performance. It will enable management to know the importance of cost management. This will enable them to look at the purchase department will seriousness in an organization in which it is found, it will also be useful to students who are interested in cost accounting system and management.