Cost Control as a Survival Technique of a Manufacturing

316 Words2 Pages
CHAPTER ONE 1.0 INTRODUCTION 1.0 BACKGROUND OF STUDY An effective and efficient cost control system is the most appropriate survival technique for a manufacturing company in this time of detecting productivity low capacity utilization. It is doubtful whether a manufacturing company that does not adopt such a strategy will succeed as a going concern in a depressed economy such as Nigeria today. Ascertaining the cost of production plays a vital not in fixing of selling price. It will be suicide to sell a product for less than its cost price if cost contract is effective and properly managed, the goals of any manufacturing company will be achieved { maximizing profit and minimizing cost}. In a depressed economy where cost are increasing at a alarming rate, and sales volume are decreasing running a business is a matter of survival of the fittest, this is a case in a staff competitive environment like Nigeria. Since a company commit success by increasing is price unilaterally, most find ways of confiding costs so as to it least bread even manufacturing companies fails, due to lack of expert financial advice. Experience has shown that in most companies cost control is non- existent or very weak. 1:2 STATEMENT OF PROBLEM. The focus of this research work is the mobility to manufacturing companies to adopt efficient and effective cost control system. 1:3 OBJECTIVES OF STUDY In the case of this research work, i) I intend to examine critically cost control as a survival technique for a manufacturing company in depressed economy. ii) I identify and investigate the major problems. iii) To find and suggest ways of solving the problems associated with cost control as they occur in vita foam Nigeria plc, ikeja. iv) To look at the low cost control as a survival technique related to the organization corporate objectives and
Open Document