1.1 BACKGROUND OF THE STUDY
It is generally claimed that Nigerian manufacturing industries are growing geometrically and there is public critisms against this claim ranging from inefficiency of labor, waste of raw materials unpredictability, investment decision error etc.
The purpose of this study is therefore to clearly identify the importance and relevance of standard costing in a manufacturing companies and its contribution so far. However without a pure definition of the subject matter (Standard costing) and its explanation some readers may not easily understand its relevance and application in a manufacturing industry.
Standard costing is defined as a system of cost accounting which makes use of pre – determined cost relating to each element of cost layout, material and over head for each service supplied. (Nweze, 1998:86). Actual costs incurred and compared with the standard cost as the work proceeds, and the difference between the two is known as variance. And before standard cost can be calculated, there must be considered a number of basic condition which determined the standard cost which should be calculated (Nwoha and Ekwe, 1999:161). Alternatively standard costing relate to the cost and quality of inputs used in manufacturing goods or providing services (Garrison 1989:130).
Cost first developed is concerned primarily with recording and analyzing of historical this is to say, the actual cost which had already been uncured. It was soon realized that historical cost possessed some considerable disadvantages and limitation. for example, the actual cost of product of an article no matter how accurately it may have bee recorded provides no indication of the degree of efficiency with which has been provided, neither does it give any information about what the cost of production ought to have been or about what it could have been under different conditions of manufacturing.
Standard costing set out to determine what cost of production ought to be or could be under defined condition of production (Lucey, 1996:49).
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
61,483 people found this useful
THE EFFECT OF SOCIAL MEDIA ON STUDENTS PERFORMANCE IN LEARNING LISTENING COMPREHENSION
48,018 people found this useful
TAX ADMINISTRATION IN NIGERIA: CHALLENGES AND PROSPECTS, A CASE STUDY OF LAGOS STATE BOARD OF INTERN...
42,374 people found this useful
THE EFFECT OF TREASURY SINGLE ACCOUNT ON THE ECONOMY OF NIGERIA
42,322 people found this useful
IMPACT OF SOCIAL MEDIA ON CONSUMER BEHAVIOR
39,296 people found this useful
CAUSES AND EFFECTS OF COMMUNICATION BREAKDOWN IN AN ORGANIZATION (A case study of champions’ brewe...
38,371 people found this useful