ECONOMIC EFFECT OF UNEMPLOYMENT ON THE NIGERIA ECONOMY
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ECONOMIC EFFECT OF UNEMPLOYMENT ON THE NIGERIA ECONOMY
Chapter one
INTRODUCTION
Background of the Study
Cost control is an essential tool for the sustainability of every commercial organisation. The purpose of this work, “The Impact of Cost Control in a Brewing Industry:
A Case Study of Nigeria Breweries Plc. 9th Mile Enugu Metropolis,” is to x-ray the conceptual insight of cost control techniques and determine whether those techniques in the literature are operational in practice, as well as the effect they have on the organisation.
In addition to these, similarities and differences would be investigated and observed. The control of costs is critical to the performance of various commercial organisations. A business entity is established as an economic institution with profit as the primary business goal.
Every firm is concerned with achieving profitability objectives because, regardless of the argument for the pace of profitability in modern business, it remains the primary and sole measure of corporate efficiency and vehicle for survival in a competitive and unstable business environment.
To attain this profitability target, numerous business concerns seek to keep costs to a minimum, and the importance of this cost awareness has been heightened by the current high cost of raw materials and other production costs.
Since the implementation of austerity measures in 1982 as a result of the country’s declining foreign exchange earnings, the cost of raw materials sourced outside the country has risen significantly.
In order to keep costs reasonable, many companies have found ways to get raw materials locally, which are less expensive than foreign-sourced materials.
This drives the majority of these industries into agriculture in order to produce their own raw materials. For example, the malt previously utilised by brewing businesses has been replaced with maize as a consequence of research conducted by these industries.
STATEMENT OF PROBLEM
Cost control in any organisation is not an easy issue; attempts are made to keep costs to a level that the organisation can afford.
As a result, it has become common knowledge that there is a problem in an organisation if the cost method in use is either irrelevant or ineffective. Business organisations are seeing a reduction in profit as a result of tributary cost allocation to products and cost centres. This has risen to:
1. High product costs.
2. High product price.
3. Low turnover rate.
4. Costing method commonly used by an organisation.
In order to generate adequate cost information,
Price control with the goal of minimising costs while optimising income is important to management in the domain of planning decision making.
OBJECTIVE OF STUDY
Every human activity must have an objective; without one, plans are rendered useless. The purpose of this study is to evaluate how what the author has learned as theories is used in real-life situations relating to the influence of cost control in the brewing industry.
These are some of the key objectives of this effort.
· Determine costing methods employed.
· Identifying any potential variances in application and impact throughout the organisation.
· Evaluate control systems’ effectiveness.
· Determine costing methodologies employed by the organisation.
Finally, the hope is that the findings will be a guide for the future.
decision-making and serve as a benchmark for future researchers in the field of cool control.
SIGNIFICANCE OF THE STUDY
It is an undisputed fact that anything done with a defined goal is important. This could be beneficial or detrimental. The value of this research rests in the fact that the author is now better prepared to tackle such issues head on in the future, should he find himself in an enterprise that requires her skills.
Again, it allows any organisation to understand cost control approaches and the outcomes of their deployment.
Finally, it will provide any interested researcher in cost control measures with a solid foundation for understanding this study.
Research Hypothesis
1. Ho: Lowering costs per unit does not boost profits or turnover.
Hello: A lower cost per unit boosts profit or turnover.
2. Ho: Cost control is ineffective in measuring managerial performance in an organisation.
SCOPE AND LIMITATIONS OF STUDY
It would be appropriate at this point in time to state absolutely and emphatically that the purpose of this study is to be exhaustive. Given the undeniable fact that the issue is broad, the write-up has been narrowed to the most pertinent parts.
This section discusses cost management techniques and their impact on the brewing business. This article consists of a good chapter. Chapter one is an introductory chapter, Chapter two provides an overview of the issue,
Chapter three is the study strategy and methodology, Chapter four is for data analysis, and Chapter five is where the author presents his findings, recommendations, and conclusion.
Also, some limitations provided significant challenges to the researcher, including time availability, insufficient funding, and the tight nature of the company’s policy about visitors to sensitive areas, which hampered an in-depth investigation of the influence of cost control.
Definition of Terms
COST CONTROL This includes all efforts to keep the actual cost incurred in accordance with the specified cost, as well as comparing actual costs to predetermined costs to reveal unjustified prices so that steps can be done to identify and, if possible, remove the responsible element.
COST UNIT: A quantifiable unit of product or service against which costs are determined.
COST CENTRE: A location function or item of inquiry for which cost can be determined and linked to a cost unit for control purposes. It refers to the unit in which costs are accrued.
MARGINAL COSTING: A costing theory in which variable costs are charged to the cost unit and fixed costs incurred within the relevant period are written off in full against the contribution for that period. It is the rise in cost caused by each unit of output.
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