TABLE OF CONTENTS
- Statement of the research problem
- Objective of the study
- Statement of Hypothesis
- Research Methodology
- Scope and limitation of the study
- Significance of the study
- Definition of terms
- Purpose of control
- Division of control
- Basic Element of control
- Cost control
- Cost and expense
- Purpose of cost studies
- Cost center
- Cost unit
- Element and classification
- Other cost of classification
- Cost control techniques
- Research Instrument
03.2 Method of data collection
- Research of findings
- Research of data analysis
A business can be defined as the sum total of those activities that have their main purpose of creations, maintenance and extension of a concern, with continuous to exist because it earns profit or than benefits.
Business is set-up to achieve certain objectives, these objectives may range from maximum of the organizer, wealth, rendering of certain essential service to the community, capturing of larger share of market for it product or services to maximization of profit or minimization of cost.
In achieving these goals, resources inform of human and material have to be employed these resources employed are measured in quantitative term and then translate them into what is known as cost.
A rational businessman has in his mind apart from other aim in his business undertaking, the maximization of profit and minimization of cost. But the business operation environment is dynamic and complex. Some factor, internal and external, may affect the cash flows position of the firm and possesses a threat to the going concern intension of the organization of the business.
- STATEMENT OF THE RESEARCH PROBLEM
The major problem of this study is to find out the effect of cost and reduction of maximization of cost. Undoubtedly, it will lead to decline in operating profit or low return on invested capital and gradually culminate into cash flows or liquidity problems.
A continuous high operational cost with less revenue will have adverse effect on the break even position of an organization.
In view of the above, there will be need to put in place an effective operational and control strategies to overhaul and revamp the operational performance of the business so as to have stable and stand financial stand.
Although, strategies is never set where a business has no problem of any form, but it may be set to improve the operational standard of a business enterprise.
There are many strategies that can put in place to solve business problem. Among the strategies for solving business economic problem are the cost control and cost reduction is used to achieve the corporate objectives.
More so, the cost control techniques have the broad objective of curtaining cost within a predetermined target but cost reduction is an active and dynamic concept that attempt to extract more from the factor of introduction without loss of effectiveness. It also aims at reducing costs from accepted standard and at the same time maintaining the effectiveness of the product or services. Strategies in business organization.
Also, the problem of the cost reduction in economics of Nigeria business organization and the effort made in solving economic problem of the cost reduction in Nigeria business organization.
However, the fulfillment of this intension in totality is very subjective and unrealistic as a result of inevitable environmental factor which have direct or in direct impact on the business.
The environmental to have effects on the cost structure of organization, they are determinant of the operational cost of activities or service being carried out by a business enterprise as they influence more or most significantly the management policies.
For example, taxation, which is one of the government fiscal policies in the annual budget, will in no doubt, have effect on the operational cost of a company. This is one of the operating environmental factors and it is uncontrollable by the management of a business.
More so, the organization and operational policies of a company will have favorable or adverse effect on the cost structure of such organization.
Therefore, an incessant increase in the operational cost will negate the aim
However, the success of this strategy will depends on the style of planning the business uses. The inability of a company to encourage “GAOL CONGRUENCE” is one of the associative problems militating against the successful employment of these schemes.
In attempt for an organization to achieve its goal for satisfaction of individuals in the firm must be created. The achievement of goal congruence requires consideration by the firm, a broad range of human need in additional to those that can be satisfied by economic rewards.
Where the above cannot be achieved, the effects of cost control and cost reduction scheme might not augur well for the business, therefore, cost control and reduction strategy must be meticulous used and implemented on achieving the desired objective of the schemes.
The techniques involves the strategies shall be fully considered in the subsequent chapter.
- OBJECTIVE OF THE STUDY
The purpose of the research is to find out what are the effect of the cost control and cost reduction strategies on the overall performance of a firm. It will reveal the short-coming in these strategies for solving business economic problems.
The research will also attempt to define and explain the meaning of cost control and cost reductions, the technique involves as well as the different in their applications.
However, the result of the research will serve as a single guide to policy makers in the business organization in taking decision as regard to thus topic.
- STATEMENT OF HYPOTHESIS
Cost control and cost reduction strategies do not lead to achievement of corporation objectives and cannot be used to solve business economic problems.
Hi: Cost control and reduction strategies can be used to achieve corporate objective and also used to solve business economic problems.
Hi: Cannot be used.