The concept of profitability can be defined as that concept which provides management with alte4rnative 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.
It is obvious that majority of the policy decisions of manufacting industries are generally directed towards profitability. The policy decision made under this concept has direct impacts on increasing and enhancing the general profitability of the manifesting industries concerned.
The origin of this concept can be traced back to era of industrial revolution most business grew from the usual family arrangement to large groups. Resources were pulled together and handed out to other people to manage for the real owners.
Naturally, resources owners must expect a profitable return from their investments. The urgent obligation forced management to seek ways of carrying the activities so as to make profitable reforms to the resource owners. The growth and completing in the individual sectors gave rise to the needs for policy statement or decision on certain issues. Materials must have to be bought in enough quantity to avoid stock out and at the same turn check over stocking.
Labour which is one of the factors of production, must be allowed to operate in a conducive environment so as to reap the benefit of hiring labour. Prior to communication general ecological consideration must reviewed. There after site is augured structures erected, machine and equipment installed.
One take of the manifesting industry must more the champing technology, meet its social responsibilities, operates under government regulations, pay tax as of and when due, meet the expectations of the shareholders. Moreover, high administrative cost of champing technology, herce competitions, cost of government restichons, poor capital base and the needs for maximization of shareholdes wealth must be highlighted and adjusted in such a way that the total cost of manufacturing a product will not only be less than sales revenues but also gives a good profit margin.
1.1 BACKGROUND OF THE STUDY
Can't find what you are looking for?
Call (+234) 07030248044.
OTHER SIMILAR ACCOUNTING PROJECTS AND MATERIALS
AN APPRAISAL OF THE IMPLICATION OF ELECTRONIC BANKING IN NIGERIA BANKS (A CASE STUDY OF ACCESS BANK)
CHAPTER TWO REVIEW OF RELATED LITERATURE Electronic banking in Nigeria has overtime been viewed by many especially economists as having a lot of implications on the economy of Nigeria and especially...Continue reading »
A CRITICAL ANALYSIS OF THE USE OF FINANCIAL STATEMENTS IN ASSESSING THE PERFORMANCE OF AN ORGANIZATION (A CASE STUDY OF FIRST BANK NIGERIA)
ABSTRACT The study was carried out to analyse how an organization performs making use of the financial statements with First Bank of Nigeria Plc serving as the case study. the study disclosed that th...Continue reading »
AN EVALUATION OF THE PERFORMANCE OF NIGERIAN STOCK EXCHANGE IN THE ECONOMIC DEVELOPMENT OF NIGERIA ( A CASE STUDY OF NIGERIAN STOCK EXCHANGE)
HISTORICAL BACKGROUND OF THE NIGERIA STOCK EXCHANGE IN THE ECONOMIC DEVELOPMENT OF NIGERIAN. The nigeria stock excahnge denoted by NSE is a government establishment where stocks are traded on a daill...Continue reading »
APPLICATION OF BUDGETS AND BUDGETARY CONTROL MEASURES IN A NON-PROFIT ORGANIZATION: A CASE STUDY OF APOSTOLIC CHURCH, DELTA
2.1 CONCEPTUAL FRAMEWORK A budget is can be defined by accountants as “a planned outcome to be generated and for the expenditure to ensure during that period and the capital to be employed to a...Continue reading »
ASSESSING BOOK-KEEPING PRACTICES OF SMALL AND MEDIUM SCALE ENTERPRISES IN CALABAR LOCAL GOVERNMENT AREA
ABSTRACT The economy of Nigeria cannot function properly or thrive without the micro, small and medium scale enterprises (SMEs). These small scale enterprises cannot function properly if they are not ...Continue reading »
ASSESSMENT OF ADEQUATE RISK RECOGNITION AND MANAGEMENT IN NIGERIAN INSURANCE COMPANIES (A CASE STUDY OF UNION ASSURANCE COMPANY, UYO)
THE CONCEPT OF RISK Risk has been the subject of study by different scholars over the years with several meaning and definitions. But the most accepted definitions are that of J.E Banister and P.A Baw...Continue reading »
What are looking for today?
THE IMPACT OF HUMAN RESOURCE PLANNING ON ORGANIZATIONAL PERFORMANCE
70,539 people found this useful
THE EFFECT OF SOCIAL MEDIA ON STUDENTS PERFORMANCE IN LEARNING LISTENING COMPREHENSION
51,780 people found this useful
IMPACT OF SOCIAL MEDIA ON CONSUMER BEHAVIOR
47,359 people found this useful
TAX ADMINISTRATION IN NIGERIA: CHALLENGES AND PROSPECTS, A CASE STUDY OF LAGOS STATE BOARD OF INTERN...
46,680 people found this useful
IMPACT OF E-LEARNING ON THE ACADEMIC PERFORMANCE OF UNDERGRADUATE STUDENTS (A CASE STUDY OF NATIONAL...
46,282 people found this useful
CAUSES AND EFFECTS OF COMMUNICATION BREAKDOWN IN AN ORGANIZATION (A case study of champions’ brewe...
43,808 people found this useful