Cost accounting: A tool for the management decision making process in Nigeria

Authors

  • Olanitori Idowu Paul Paul Consult, Research and Data Analysis, Rufus Giwa Polytechnic, Owo, Ondo State, Nigeria. https://orcid.org/0000-0003-0040-5721
  • Fadakinte Bukola Veronica Administration and Academic Office, Rufus Giwa Polytechnic, Owo, Ondo State, Nigeria.
  • Olemija Temidayo Lawrence Accountancy Department, Faculty of Business Studies, Rufus Giwa Polytechnic, Owo, Ondo State, Nigeria.

DOI:

https://doi.org/10.47264/idea.lassij/5.2.10

Keywords:

cost accounting, management decision, decision making, selling price, valuation of inventory, inventory control, labour remuneration, waste reduction

Abstract

The study, cost accounting, as a tool for management decision making process is targeted at exploring the various ways which cost accounting information could help the management of enterprises especially manufacturing and processing companies in the formation of polices and making of sound and reliable decisions. In order that this purpose could be proven, the researcher formulated various relevant research questions and also two major hypotheses were also formulated. Interview was conducted with the aid of instrument known as questionnaires which were administered to the staff of Tisco’s Pharmaceutical. Chi-square (X2) method was used for testing the hypotheses under the research. Findings exposed that cost accounting is an aid to management decision making. Also, to be clear of every sentiment, relevant literatures complied in authorities in the relevant fields were reviewed. The opinion of authorities was not different, showing that costing information is necessary for fixing selling price, valuation of inventory, inventory control, labour remuneration, waste reduction, capacity utilization, cost control ascertainment of profitability. Thus, the study proves that cost accounting is a tool for management decision making process in any organisation either in public and private sector.

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Published

2021-10-23

How to Cite

Paul, O. I., Veronica, F. B., & Lawrence, O. T. (2021). Cost accounting: A tool for the management decision making process in Nigeria. Liberal Arts and Social Sciences International Journal (LASSIJ), 5(2), 139–158. https://doi.org/10.47264/idea.lassij/5.2.10