An Appraisal of the Application of Cost and Management Accounting Techniques in Nigerian Manufacturing Companies: a Case Study of Benue Breweries Company Limited

While we are performing our analysis on different aspects of the company, we look at the three main types of cost. When we remain devoted to improving our costs, and the faults related, we show our same devotion to our consumers. This is portrayed by the quality of products we put on the shelves. Prevention costs, appraisal costs and Failure costs are areas

“Companies can choose to use the accounting job order costing method when they have a single product line or numerous products to manufacture. However, it is less costly and less time-consuming if they elect to use process costing when calculating the manufacturing of a single product line. With similarities

I am somewhat confident this topic will not be the most appealing to the masses, but to the few who work with manufacturing accounting, standard costing, work order processing, and the JD Edwards Manufacturing Accounting and Costing application, this article may be of interest.

The ABC costing system is a technique in cost management. Activity Based Costing aims to reduce costs while at the same time enhancing product quality. Managers use ABC to identify how resources uses cost differently and then determine areas which need continuous improvements. When a unit is produced, unit level activity is done. After a whole batch is doe every time, batch level activity is undertaken for the company. For effective production process, we allow facility sustaining activities in the company. Service industries consist of different services which take different levels of resources. The existence of regulation and stiff competition in the service industry do determine the costing system to be used in the

This was imperative as only valuable information could encourage managers to make more accurate decisions. Management accounting techniques such as marginal costing and responsibility accounting were presented in this time to assist managers with decision making or create strategic business units. A significant increase in global competition complemented by rapid technological growth in the 1980s affected many aspects of the industrial sector. In this time, the management emphasis continued on cost reduction, however more process analysis was made conceivable by cost management technologies. Some techniques widely adopted by businesses in this time include Just in Time (JIT) and Activity-Based Costing (ABC). In the 1990s world-wide industry continued to face considerable uncertainty and unprecedented advances in manufacturing technologies, which further increased and emphasised the challenge of global competition (Abdel-Kader & Luther, 2008). Prevalent techniques introduced during this stage were Total Quality Management (TQM), Activity-Based Management (ABM), Benchmarking and Reengineering.

In this following document you will find 4 different job costing activity’s and for each of these I will be using a appropriate costing system for each .Also I will be explaining when a Company would use job costing, process costing, marginal and activity based costing. And I will be detailing the advantages/disadvantages of each method.

There are many concepts of cost in an organization. Costs also are used in different business applications, such as financial accounting, cost accounting, budgeting, capital budgeting, and valuation. Consequently, there are different ways of categorizing costs according to their relationship to output as well as according to the context in which they are used. Following this summary of the different types of costs are some examples of how costs are used in different business applications.

The third objective of cost accounting is to produce statements whenever is required by management. The financial statements are prepared under financial accounting generally once a year or half-year and are spaced too far with respect to time to meet the needs of management. In order to operate a business at a high level of efficiency, it is essential for management to have a frequent review of production, sales and operating results. Cost accounting provides daily, weekly or monthly volumes of units produced and accumulated costs with appropriate analysis. A developed cost accounting system provides immediate information regarding stock of raw

When properly implemented, the cost accounting function can have a pervasive influence in the modern corporation. Unfortunately, it is not always properly implemented because management often is not completely aware of all the uses to which the cost accounting function can be put. This chapter describes the main categories of activities in which this function can become involved, and can be used as a guide by the controller in creating a well-rounded niche for the cost accountant.

Application of appropriate cost performance strategy is a vital tool for the organizational objective. Budgeting procedure & its implementation is an important element of the cost accounting practice. The organization that has a substantial history of efficient budgeting methods can easily read the market. The total costing system is a basic of all small and independent cost measurement technique. An organization must have an accounting fit to the infrastructure and management development team. Any kind of variance in the performance must be dealt with due diligence. Cost has a relationship with the whole production process. Whenever this kind of fit is well suited to the performance of the company, there is a strong possibility that the company will improve.

This brief report will cover various definitions of dissimilar types of costing such as Marginal costing and more. It will also aim to provide examples where necessary to explain the definitions more clearly and in detail. As following this introduction, there are a few different types of costing methods well defined and analysed in order to help with decision making. The purpose behind costing is to determine the value inventory as the cost per unit can be used to value stock in the statement of financial position. It could also record the costs associated with the product need to be recorded in the income statement. Costing also assists with pricing products as the organisation will use the cost per unit to assist in pricing the product.

3) These standard costs were allocated for manufacturing overhead for determining the companies’ revenue and profit margins based off the final product and sales. These allocated cost were then measured by accounting, with primary focus on the utilization capacity of the manufacturing plant. The conventional quantities, for example labor utilization, selling price variance, production proficiencies, amongst other manufacturing identities procedures. These types of processes lead to a factory that produces large amounts of scrap, poor quality products, increased shipping costs, customer dissatisfaction, shortages, etc. These issues are common in factories however, can be avoided if Lean processes can be applied. Ideally this would incorporate understanding the necessary resources and unnecessary procedures.

When budgeting for the future as well as estimating costs for production of goods in the present there is a need to assess the prices of the direct inputs. The direct costs are those which are directly incurred as a result of production and can be completely attributed to that production. These costs will include materials, labor and other expenses such as power. The process of costing may appear simple; to calculate the direct costs and then allocate the indirect costs. However, while the concept may appear simple, the practice can be difficult with a number of potential sources of error which may lead to wrong assessments.

Traditional costing system was introduced decades ago to meet the demand of management accounting in the manufacturing firms. This was vital to facilitate the allocation of overhead costs

The management of a company needs to develop cost and management accounting systems which will provide adequate information about main impacts on cost characteristics and companies performance. The cost and