THE RAMIFIED FASTORS AFFECTING THE CONCEPT OF PROFITABILITY AS A GUIDE TO POLICY DECISION IN ACCOUNTING (A CASE STUDY OF SOME MANUFACTURING INDUSTRIES IN OSHIMY SOUTH L.G.A OF DELTA STATE
ABSTRACT: Before I delve into this issue, Let us look from the realistic point of view, the concept of profitability- it can be seen as that concepts which provides management with alternatives course of action according in the various degree of profitability, stating dearly in relevant cost accounting from the costs and benefit associated with individual projects which enables management to the most profitable. Majority of the policy decision of manufacturing industries are generally directed towards profitability. Policy decisions made under this concept has direct effect on increasing and enhancing the general profitability of the manufacture industry concerned. Unfortunately, this laudable guide has been relegated to supportive role in some manufacturing industries because of certain factors million against . Such factors have in most cases affected the profit position of industries and in extreme cases to huge losses, which sometime ding such companies involved for unexpected liquidation. Hence, this project work tried to know those factors affecting the concept and respective effects on the profit position of the selected industries. In view of covering the three dimensional focus of the research the project focused on three major areas:
- The exogenous factors affecting the concept of profitability.
- The endogenous factors affecting the concept of profitability.
- The political factors affecting the concept of profitability.
These three areas combined to give a broader view of the factors militating against the concepts of profitability.
TABLE OF CONTENTS
CHAPTER ONE
INTRODUCTION 10
- Background of study 12
- Statement of study 14
- Purpose of study 14
- Scope and limitation of study 15
- Definition of terms 16
CHAPTER TWO
DEFINITIONS/FUNCTIONS 18
- Cost 19
- Material costing 19
- Labour costing 20
- Factory overhead 20
- Costing method 21
CHAPTER THREE
SUMMARY OF FINDINGS/CONCLUSION AND
RECOMMENDATION 30
3.1 Finding 30
3.2 Conclusion/Recommendation 36
Bibliography 44
Appendix.
CHAPTER ONE
INTRODUCTION
The concept of profitability can be defined as that concept which provides management with alternative course of action according to the various degrees of profitability stating dearly in relevant cost accounting forms, the costs and benefits associated with individual project which enable management for select the most profitable.