CHAPTER ONE

INTRODUCTION

I.1 Background to the Study

The growing complexity of modern production method results in

greater capital investment, competition and modern market. For any

company to be successful in such environment, it must have a good

costing system. The atainment of this objective demands careful

selection of a costing system that suites the production process of the

company. Vickery (1971) has this in mind when he said that costing

system is essentially analytical in nature, and it is therefore impossible

to derive a system which suites all business. Hence, the costing system

adopted by a manufacturing company must be designed to suite its

production process.

A common misconception made by management of a company is

that a single definition of cost is ideally suited to all types of

manufacturing decision. What a manager’s plan to produce must be

1
well known to him and always taken into account where he fails to

realize this, difculty arises in determining the cost of production. This

gives rise to two reasons for the dificulty in determining the cost of

products produced. First, the relationship between the cost incurred

and output produced is often difficult establish. Secondly, cost may be

assembled, combined and reported in diferent ways.

In addition to inherent difculties in determining the cost of

output, management fails to recognize that diferent cost measurement

are needed for different purposes.. If cost information is to be used

intelligently, management must understand that any cost figure has

inherent limitation and that no single method of arriving at cost will

serve equally well for all the various purposes for which information is

needed.

Modern technology makes it imperative for a firm to cost its

products. Lagne, (1984) contends that if a firm fails to cost its products,

the firm will continually cease to exist.

2
 Cost determination is essentially concerned with tracing of cost

through to the end department and product. This tracing can be in

terms of economic benefits, causes and efect of divergence from plan.

A costing system provides a reliable means of determining the

cost of production. An important future of costing system is the firms

measurement and allocation of resources which the firm solves its

problem permanently in order to safeguard its existence. Bhathachangy

(1980) points out that from a management point of view perhaps, the

most important use of a costing system is for revenue decision. But in

addition to that, elements of costs are not used as a basis for logical

accumulation of cost figures, but also for diagnosis.

However, the cost accounting technique is planning, credit

control, decision making, queuing theory etc. A firm with these costing

techniques or systems will produce and sell at a high profit or at loss.

This is due to the fact that the firm fails to adopt a proper costing

system or the implementation of the system adopted is weak.

3
 Baty (1974) contends that a costing system adopted by any firm

should be the most appropriate for the firm concerned, where

management arrives at a decision without the aid of adequate and

correct costing data, is to invite problems. More so, where there is

weakness in the implementation of the system adopted, aims and

objectives of the system will be defeated.

Cost and management techniques serve as useful tool for

inventory valuation, revenue decision making, cost control, credit

control and price seting when they have been carefully designed and

implemented. Apart from these, costing system can provide the basis

through which the efciency of the firms operations can be measured.

Such tools are standard costing and budgetary control.

Standard costing involves the detailed estimation of the cost of a

product before it is manufactured so that expenditures can be

controlled during production, on completion, the actual result will be

compared with the estimated result and variance ascertained and

investigated.

4
 Budgetary control is the establishment of departmental budgets,

relating the responsibility of executive to the requirement of a policy,

and the continuous comparison of actual with budgeted results either

to serve by individual action the objective of that policy or provide a

firm basis for revision .The reason for determining variance is to enable

costing system to not only accumulate cost data but also to find out

reasons for them and taking appropriate action where

necessary( Arhuhie, 1989).

In order to understand the nature of modern complex industry there

is need for a better understanding of costs and how they behave.

However, management of a firm may consider that seting of price is a

mater of judgment, play an important part in deciding deficiencies.

What is required is a critical analysis of cost incurred. This in turn

requires the knowledge of costing techniques.

1.2 Statement of the Problem

The aim of the research work is to find out the cost and management

accounting techniques to be established in manufacturing companies,

5
hence the life wire of every country’s economy lies upon the state of its

manufacturing companies. So if manufacturing companies adopt the

appropriate techniques, they will strive or do well and also the state of

the economy will improve. For manufacturing companies to be healthy,

it is a function of how costing techniques is managed. It is to this end

that the researcher wishes to appraise the various cost and management

accounting techniques such as planning, cost control, standard costing,

credit control decision making and the recently emerged management

techniques such as linear programming, decision theory and queuing

theory are employed by manufacturing companies. The aforementioned

techniques that best suites manufacturing companies and will be the

key in the appraisal of their application by manufacturing companies

are:

Standard costing: Simply reporting cost to management does litle to

help control costs. Cost accounting can be improved upon by

introducing a formal system of standard costing.

6
Absorption costing: The common product costing practice of
applying
fixed factory overhead to the goods produced.

Marginal costing: The variable production of product and services are

separated from the fixed cost and also a costing mechanism for showing

the efect of profit on change in volume of output.

Budgetary control: Scientifically planning ahead is a means of control in

which the actual state of affairs is compared to plan for, so that

appropriate action may be taken with regards to deviation before it is

too late.

The aforementioned techniques will be appraised and seen how

their application affects manufacturing companies.

It is noted that many of the manufacturing companies do not

employ the use of these relevant cost and management accounting

techniques aforementioned which hinders the efective decision making

in these organization.

To this end, the researcher seeks to find out whether cost and

management accounting techniques are used in manufacturing

7
 companies and if they are not in use, how such companies would view

the importance of these usage for the efective efficiency and

profitability of the companies .

1.3 Objectives of the Study

I. To find out the desirable conditions before designing and installing a

cost and management accounting techniques for manufacturing

companies.

II. To ascertain how cost and management accounting techniques

designed for Benue Brewery Limited assist management in planning

controlling and decision making

III. To determine the factor that hinders the efective use of cost and

management accounting technique in Benue Brewery Limited

1.4 Research Questions

I. Do manufacturing companies use the desirable condition for designing

and installing a cost and management accounting techniques?

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 II. Do cost and management accounting techniques designed for Benue

Brewery Limited assist management in planning, controlling and

decision making?

III. What are the necessary factors that limit the efective use of cost and

management accounting techniques in Benue Brewery Limited?

1.5 Research Hypotheses

Akpa and Angahar define a research hypothesis as a

conjunctional statement or general phase which cannot be determined

until it is proven.

In a related development, Asika, (1991) said a null hypothesis is

central in research and is the hypothesis that is tested. The word No

which is the null hypothesis (Ho) will be stated in the negative assertion

from which its alternative (Ha) will be used for a positive assertion

form.

Following the above, the research hypotheses will be thus:

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Ho1: manufacturing companies do not use the desirable condition

before designing and installing a cost and management

accounting technique.

Ha1: Manufacturing companies use the desirable condition before

designing and installing a cost and management accounting

technique.

Ho2: The cost and management accounting techniques designed for

Benue Brewery Limited do not assist management in planning,

controlling and decision making.

Ha2: The cost and management accounting technique designed for

Benue Brewery Limited assist management in planning,

controlling and decision making.

Ho3: Power, raw material, technology do not hinder the effective use

of cost and management techniques in Benue Brewery

Limited.

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 Ha3: power, raw material, technology hinders the efective use of cost

and management accounting techniques in Benue Brewery

Limited.

1.6 Significance of Study

The study when successfully completed will be of great

importance in the application of cost and management accounting

techniques and those who are intending to adopt the technique. This is

because, the research will review the role of cost and management

accounting techniques to manufacturing companies both private and

public. This will also enlighten manufacturing companies’ operators so

as to carry out the business efectively and efciently. The study will

serve as a useful material for the management of Benue Brewery

Limited, researchers and other companies in the manufacturing

industry.

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 In addition, this research work will be, an addition to the stock of

material available to the researcher in the area of cost and management

accounting techniques.

1.7 Scope of the study

The purpose or aim of this research is to appraise the application

of cost and management accounting techniques as a powerful tool used

in manufacturing companies to evaluate their decision making in order

to achieve the predetermined objective of the company.

However, due to large population of manufacturing companies in

Nigeria, the topic has been narrowed down to Benue Brewery Limited

which serves as a case study for the research. Therefore, it is within the

researchers reach.

1.8 Definition of Terms

I. Absorption Costing: A principle whereby the full cost of production,

direct labour, direct material and manufacturing overhead are allocated

to units produced during the period.

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 II. Break- even- point: The point at which revenue fully covers all

expenditure and only that, no margin of profit exist.

III. Budget: A financial and/or quantitative statement and approved prior

to a defined period of time, of the policy to be pursued during that

period for the purpose of ataining a given objective.

IV. Cost Allocation: The allocation of whole items of costs to cost units or

cost centres.

V. Cost apportionment: The cost allotment of a proportion of items of cost

to cost units or cost centres.

VI. Cost control: The regulation by executive action of the cost of operating

and undertaking

VII. Queuing: It is simply the mathematical approach to the analysis of

waiting lines.

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 CHAPTER TWO

LITERATURE REVIEW

2.1 Introduction

This chapter is mainly concerned with reviewing existing

literature relevant to the topic, Appraisal of the Application of Cost and

Management Accounting Techniques in Nigerian Manufacturing

Companies. The chapter covers the following areas.

2.2 Conceptual framework

The growth in complexity in manufacturing process during the

20th and the 21st century give rise to cost other than labour and materials

as a significant part of total cost of production. More so, the increasing

use of heavy power equipment and the development of mass

production techniques made the t recognition of overhead cost a

necessity. The efect of these led to the development and expansion of

cost accounting.

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 Between 1890 and 1915 cost accounting grew rapidly. The

formulation of cost accounting basic structure and mechanic for

integrating the cost record and general accounts were devised this

period. The development resulted in an improved method of

calculating income for industrial firms, inventory valuation and a beter

matching of revenue and expenses. These basic structure and

mechanism are briefly reviewed below.

2.3 Costing system

The general rule of cost determination is the same in the

various production circumstances, the various production can be said

to constitute diferent costing system.

According to Horngren(1989), the primary objective of cost

accounting is to show the total cost of the articles the manufacturer

produces, and then analyses the composition of the cost so that

efective control over such element of cost can be exercised. To achieve

this objective, organizations use costing system. Batty (1974) defined a

15
system an established sequence of procedures for the purpose
of
achieving specified objective at a minimum cost. The use of the word in

costing is usually limited to a major set of procedures which result in

achieving a number of objectives.

It is also a formulation of the internal financial information

systems. Biggs(1972) realized the importance of cost accounting and

stated that without a system of cost account, it is doubtful whether a

business of any size , nature can survive in the intensely competitive

condition of today, but it must be emphasized that just like no two

business are alike, even in the same industry, so no ready-made

system of cost account can be provided to suite each and every

business. The underlying principles, conventions and objects of all

costing systems are the same, but the application of these principles and

methods by which the objects are to be achieved must vary with

circumstance. A good costing system should aim at accomplishing the

following purpose:

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 I. To arrive at the cost of producing every unit, job, operation, process,

departments or services and develop cost standards.

II. To indicate to the management any inefciencies and the extent of

various forms of waste whether of materials and time expenses or in the

use of machines equipments and tools.

According to Johnson and Kaplan (1987), a management

accounting system must provide likely and accurate information to

facilitate efforts to control costs, to measure and improve productivity

and to devise improved production process. The management

accounting information must also report accurate product cost so that

accurate pricing decision , introduction of new products, abandonment

of other variable overheads it demands that fixed cost of the relevant

period are writen of in full against the aggregate contribution. The

contribution is the diference between the sales value and the variable

or marginal cost of a product in a given period of time (CIMA) And this

is the base that many items make up the total cost of job etc. vary in

total volume of production, there are others for example, many

17
 overheads which are constant irrespective of the level of production.

Some of the above mentioned methods may be the basis of a uniform

system costing.

Historical costing on the other hand is concerned with past costs

such as those already incurred. We also have absorption costing.

Absorption costing is traditional approach to valuing inventory and

determining the cost of goods sold. The fixed cost of production, direct

labour, direct materials and factory overheads are absorbed by or

associated with the time produced during the period.

2.4 Management Accounting

The management Accounting Practices Commitee(MAPC) of the

National Accounting Association(NAA) in the United States define

management accounting as “the process of identification, measurement

, accumulation , analysis, preparation and communication of financial

information used by management to plan , evaluate , and control

within an organization and to ensure appropriate use of and

accountability for its resources.

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 Management accounting may also be defined as “ the

application of professional skills in the preparation and presentation of

accounting information in such a way as to assist management in the

formulation of policies and in the planning , and control of the

operations of the undertaking” (Sizer,1996).

In the sense that management will be interested in any

information produced by an accounting system, an accounting could

be management accounting whether it was for example published

accounts mainly for external consumption or routine product cost for

internal use. However for practical purpose, such a description is too

broad and imprecise. It is to this end that T. Lucy (1983) sees

management accounting to be concerned with the provision and

integration of information required by management of all levels for the

following purpose.

a. Formulating the policies of the organization

b. Planning the activities of the organization in the short medium and

long term, i.e. strategic through operational planning.

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c. Controlling the activities of the organization

d. Decision making i.e. the process of choosing between alternatives.

e. Performance appraisal at strategic departmental and operational levels.

Management accounting therefore is primarily concerned with

data gathering( from external and internal sources) analyzing,

processing, interpreting and communicating the resulting information

for the use within the organization so that management can more

efectively plan, make decision and control operations.

To carry out this task efciently, the management accountant will

use data from financial and cost accounting systems, he will conduct

special investigations to gather required data, he will use accounting

techniques and appropriate techniques for statistics and operations

research, he will take amount of the human elements in all activities he

will be aware of the underlying economic logic, he will do all he will

produce information which is relevant for the intended purpose.

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2.5 Relationship of Management Accounting and Cost Accounting

There is no realistic dividing line between cost accounting and

management accounting particularly with regard to provision of

information for planning and control. Cost accounting is at a more basic

level than management accounting and in many organizations is

primarily concerned with the ascertainment of product costs. Because

the cost accounting system is an important source of data for

management accounting purpose, organization, student must be

totally familiar with basic accounting principles and methods and their

conventions and limitations.

2.6 Cost Accounting Techniques

In his efort to provide cost information for managerial purpose

and objective, the accountant uses a variety of techniques at his

disposal. Costing systems are used to monitor and evaluate the element

of cost used and to determine whether the firms cost performance is

worth meeting its objectives. Thus, whether the firm survives, stagnates

21
or dies, it depends on how it reacts to cost information collected by

costing system and subsequently evaluated costing techniques.

Then choice of the techniques to be employed is decided by the

size of the firm, costing system decision and objectives of the

management team themselves. Accordingly to Harper (1996), costing

technique depends upon the purpose for which management requires

the information. Management needs information for a variety of

purpose such as control and price determination and the exact purpose

determine the techniques to be used. Therefore, one costing technique

may be desirable for one particular purpose and for another. They may

not be exhaustive. Costing techniques available to the management

accountant are: Standard costing, marginal costing, and absorption

costing, budgetary control, linear programming, queuing theory and

decision making.

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2.6.1 Standard Costing

Baty (1974) defines standard costing as a system of cost

accounting which is designed to show in details how much each

product cost to produce and sell when a business is operating at a

stated level of eficiency and for a given volume of output. Simply

reporting actual cost to management to help them control costs, cost

accounting information can be improved upon by introducing a formal

system of standard costing.

According to ICMA, standard costing is predetermined cost

calculated in relation to a prescribed set of working conditions

correlating technical specifications and scientific measurement of

materials and labour to price and wages rate expended to apply during

the period to which the standard cost is intended to relate with an

addition of an appropriate share of overhead. It can be deduced from

the above definitions that standard costing is a target which shows

what is planned or expected. It is a should be cost. Standard costing is

analogous to budgetary control while budgetary control deals with the

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 whole organization, standard costing deals with units rather than the

whole organization. The standard cost of a product under normal

conditions. These implying very careful obsolete product responses to

rival product can be made.

Therefore costing system is a set of procedures used to collect,

assemble record and atach cost incurred to the cost centre or product.

They serve as tools to collect and calculate costs related to production of

a particular output. The characteristics and problems of companies

difer from company to company. Not surprisingly, cost data can be

accumulated, arranged and presented in diferent forms. This results to

the development of various costing systems to be adopted. The

adoption of any kind of costing by an organization depends on the

following:

i. The kind of product or nature of activity it undertakes.

ii. The methods of manufacture in use( terminal or continuous)

iii. Suitability of a method to an organization in terms of functional areas

and the types of information required by its executives.

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 It is possible however, to arrive at certain broadly defined

classifications of system which are suitable for various types of

industries. The most usual grouping of these classes is as follows.

1. Job (contract or terminal) costing, a scientific costing where it is

described to obtain the cost of a number of contract operations or

undertaking which are often distinguished

 Batch costing where the order which may be for a single article, or a

batch of similar articles, is the most convenient units of activity for

purpose.

 Terminal (contract costing).

2. Process costing involves an atempt to compute the cost of a product for

process, operations or manufacture. The process costing example may

be the products produced by one or more number of processes.

Variants of process costing are:

 Single or output costing: The name given to the system used by

business supplying a product of the same type.

25
  Operation (working) system costing, a system of costing for an

undertaking which render services.

 Departmental Costing, a costing for operating department of a business

or cost of products emanating from a department Furthermore, two

other kinds of costs determined for special purpose of control and

policy are :

i. Standard costing: It is the planned unit of cost of the products,

components or services produced in a period. The standard cost may be

determined on a number of bases. The main use of standard cost is in

performance measurement, control, stock valuation and in the

establishment of selling price (CIMA). The techniques encourage

management and employees since it ensures that they have no plan

ahead and also serve as a basis for quoting for jobs or fixing prices.

ii. Marginal costing: It is looked upon as a decision making technique used

to determine the efect of cost on changes in the volume of time and

output in a multiproduct from especially in the short run. Thus, it is a

technique which emphasizes the variable cost of a product that is the

26
direct material, direct labour, direct expenses and assessment of the

quantities and price of all the resources combining to create each

product. When this has been accomplished, it is then a relatively easy

mater to modify the recording of transactions in accounting system

real diference that arises between actual and standard cost of material

and labour. The actual cost of production are still recorded , but are

divided so as to value all stock accounts at standards costs

,and to direct any diferencebetween actual and

standard costs into appropriate labeled variance accounts

(Kenneth, 1974). The variance as analyzed into their causes and point of

incidence and corrective action taken. Standard costing is most efective

in industries where products and processes are standardized, for

instance when there is only one product and where

production processes are continuous. Horngren(1990)

holds the view that standard costing procedures tends to be most

efective when they are accepted to process costing, mass continuous

and repetitive production tends themselves rather easily to selling

27
direct material, direct labour, direct expenses and assessment of the
standards. He further stresses that, the intricacies conflicts

28
 between average and FIFO costing methods are eliminated by using

standard cost. In addition, standard cost approach facilitates controls.

2.6.2 Absorption Costing

According to Horngren, (1990), absorption costing refers to the

common costing practice to applying fixed factory overhead to the

goods produced. Peters(1984) defined absorption costing as a practice

where all costs are charged to process product or operation whether

fixed or variable cost with the current heavy equipment and large

investment in capacity , the growth of overhead costs increased

rapidly, it made intuitive sense to include in unit costs of inventory all

the cost necessary to make it saleable, including the cost of capacity

with absorption costing all production cost are treated as period cost ,

that is each unit has a portion of the fixed cost. Absorption costing is

the general accepted in general financial reporting.

29
2.6.3 Marginal Costing

Marginal costing revolve around cost analysis from a fixed and

variable view points, with marginal costing all variable production cost

and all non-production costs are treated as period cost. Marginal

costing is the procedure whereby the variable cost of product and

services are separated from the fixed cost and also a costing mechanism

for showing the effect of profit on changes in the volume of output. It

can also be regarded as a system of presenting costing to management

to facilitate efective cost control. It is prime cost plus variable

overhead. It is also regarded as out of power cost or additional cost

incurred in producing one unit. One of the great merits of marginal

costing is that it presents information in a form which is far less rigid

than most of the information presented on absorption costing basis.

2.6.4 Budgetary Control

The word budget is derived from the French word “bongette”

denoting leather pounch in which money is kept for meeting envisaged

30
expenses. For our purpose, a budget may be defined as, a financial and

or quantitative statement prepared and approved prior to a defined

time period expressing the plans, policies and programmes to be

pursued by a government enterprise over the period for the purpose of

atending some given set of objectives.

According to A.L Buhari (2001) a budget may be simply

defined as a document indicating the total and the composition of

government expenditures and the source from which such expenditures

are expected to be financed in the course of the year. When a

government plans its annual expenditures and revenues in such a way

that both are equal, the budget is said to be balance.

According to Vikery(1971) budgetary control is scientifically

planning ahead and is a means of control in which the actual state of

affairs is compared with the planned for , so that appropriate action

may be taken with regards to deviation before it is too late. Budgetary

control involves the formulation of a plan for each branch of industrial

activity covering a fixed future period. It also implies that managers are

30
 responsible for mistake for deviation from budgeting plan. This is its

corrective functions. Within this context, budgetary control also the

application of rules for the monitoring and harmonizing of production,

administration and general business and non business activities of the

firm in accordance with the firms objectives.

An integrated budgetary control system will include a

budgeted profit within the framework of a master budget and

coordinated functional budget. The main purpose of budgetary control

is the calculation of an evaluation of variance which is derived from the

comparison of actual with budgeted activity of the firm.

2.6.5 Queuing Theory

According to Azende T. (2011), queuing theory is used to study

the phenomenon of waiting in line longer than they have to. The theory

allows researcher to analyse several things such as curving in line,

waiting in line, and the time it takes to serve customers.

31
 According to Agburu J.T (2001), queuing theory refers to the set

of ideals or principles that relates to waiting lines. The set of concepts,

ideas, rules, principles and processes that help to explain the

phenomenal of waiting lines known collectively as queuing theory of

waiting lines. This comes as a result of planning and analysis of services

capacity. There are several queuing disciplines that have been

developed because of queuing theory. Five of which are FIFO, LIFO,

processor sharing and priority. FIFO describes the practice of servicing

customers in the order they arrive in so that the person waiting longest

is served first while LIFO describes the practice of serving customers so

that the person who come in last leaves first, such as in the process of

riding an elevation processor sharing serves customers at the same time

to that the average waiting time for all customers is about the same. The

priority discipline serves the customers with the highest priority first.

Consequently, any manufacturing company designing a service

system must have the queuing theory in mind and weigh the cost of

32
 producing a given services against the potential cost of having

customers wait for services.

2.6.6 Linear Programming

Linear programming is one of the most widely used

quantitative decision technique in business and industry in modern

times. Its application is becoming increasingly vast in production.

Linear programming can be looked upon as a decision making

technique between and among the variables which represent the

diferent events or phenomena happen to be linear (Agburu J.T ). The

technique used in allocating resources where more one key factor or

constraint is involved. It is a method of solving equations and can be

programmed for computer so that difcult and multi-constraint

problems will show scarce resources in a firm can best be utilized.

33
2.6.7 Decision Making

Decision making is said to take place wherever an individual,

firm (known as decision maker) has to choose one course of action from

several alternative courses of action.

According to Stoner et al (2000:239) decision making is the

process of identifying scheduling a course of action to deal with a

specific problem or take advantage of an opportunity. This means that

decision making is a process, a theory, while decision is the outcome of

the process. Souza states that “decision making is the process of making

up one’s mind”. Ivancevich et al (1994) sees decision making as “a

series of or chain of related steps or interconnected stages that leads up

to an action or an outcome and assessment” .In the same light though

not in the same words, decision is seen as the conscious efort made to

achieve an objective. The eforts are consciously made meaning that

environmental and contextual factors come to play in decision making

and its aim is to achieve an objective. Decision making is a frequent

phenomenon in business, economics, politics other spheres of human

34
 life. The production manager for instance must decide that product
to
produce, when to produce the product and how to produce the product

of interest.

2.7 Major Themes in Management Accounting

There are a number of important themes which pervade all

aspect of management accounting. These themes are discussed below

under the following headings, future orientation, economic reality, goal

congruence, information system, statistical operational research

technique, uncertainty.

2.7.1 Future Orientation

Much of the work of management accountant is concerned with

the future for example, the provision of information for policy

formulation for planning for decision making. In details, these activities

may involve forecasting future costs and revenue estimating future

rates of taxation, interest and inflation, considering the reaction of

market and revenue, competitors to the introduction of new products

35
 and price analyzing the likely charges in the cost structure and

productivity consequent upon the introduction of new methods and

equipment, assessing the efects of government policies on the

operations of the organization (CIMA).

2.7.2 Economic Reality

Accounting data and information are used to represent the

underlying economic activities of the organization which include

buying, materials, selling product, manufacturing and financing the

organization. Accordingly, it is essential that the records of past

performance and the information derived from the records which is

used to guide future planning and decision making represents the

underlying economic realities in clear and unambiguous manner

unfetered by accounting conventions.

Victor Smith (2011) this the direction we need to go creating a

model of economic that takes with accounts a greater range values

than simple consumerism, part of the problem with the world today is

36
that we have allowed ourselves to be defined first identity is what

derives progress and innovations. The growth paradigm as evidenced

by nature is not about expansion in the usual term but about increasing

the complexity of interacting systems and about achieving balance

between those systems. Humans have done a poor job at finding that

balance because we have choosen to look at native primarily as a

resource to fuel our own needs, rather than adding as a mater partners

in the ecological web.

Standard-issues economics is now just at the stage of geting

parts its own adolescence. Hopefully, it really to grow up now and

embrace a nuanced system of values than just consumption for its own

sake. There are many out there but we need to be tied into that limit of

business whose core values include maintaining natural system, respect

for employees and their contributions, community values, and a style of

innovation that is more all encompassing than just the botom line.

37
2.7.3 Goal Congruence

This simply means that the management accounting system

should encourage all employees, including management to act in a

fashion which contributes to the overhead objectives of the

organization, and objective would in ideal circumstance coincide. The

system and the approach adopted by the management accountant

should motive staf by means of genuine participation, goal

communication and rapid feedback and in much other way. Goal

congruence is a result of the aliment of goals to achieve an overarching

mission.

Goal congruence is one of the most important functions of

management to harmonise as far as it is practicable the goals of the

participants and sub-units with those of the organization as a whole.

This function is known as goal congruence (Victor Smith 2011).

38
2.7.4 Information System.

According to Begnon- Davies P (2009) information system is any

combination of information technology and people activities that

support operations, management and decision making. In a broad

sense, the term information system is frequently used to refer to the

interaction between people, processes, data and technology. In this

sense, the term is used to refer not only to the information and

Communication Technology (ICT) than an organization uses but also to

the way in which people interact with this technology in support of

business processes. The components are people, hardware, software,

data and network.

An organization comprise a number of information system or

networks frequently computer based sometimes .These are separate

information system dealing with sales, production, personnel, finance

and other maters .Sometimes there is integration of these sub-system.

Rarely, if ever, is the information system a totally integrated one

dealing with all aspect of management requirement for planning,

39
 control and decision making. In any organization, the
management
accounting system is designed in accordance with the principles of

system theory otherwise they will be less efcient. An example of this

could be where a poorly designed budget system causes a manager to

act in a manner which, although advantageous to the department, but

detrimental to the overall objective of the organization (Kroeake DM,

2008).

2.7.5 Statistical and Operations Research Techniques

According to Perty Bridman, it is a discipline that deals with the

application of advanced analytical methods to help make beter

decision. It is often considered to be a sub-field of mathematics. Perty

brought operational research to bear on problem in physics in the 1920s

and he later atempt to extend this to the social sciences.

Staford Beer (1967) hold it that research is based on principles,

strategies and numerical algorithms to improve an organization ability

40
to enact rational and meaningful management decision by arriving at

optional or near optional solutions to complex decision problems.

Certain aspects of management accounting, particularly in the

area of planning and decision making do level themselves to the use of

appropriate statistical and operational research techniques. The use of

such techniques does not alter the underlying objective of management

accounting but helps to improve or refine a particular solution.

Frequently, these techniques are implemented by means of computer

packages and to interpret and present the result produced.

There are numerous areas where such techniques have been

found to assist management accounting. Examples include, statistical

forecasting cost and sales extrapolations, linear programming for

resources allocation to provides such as production, planning economic

order quantity models to help solve inventory control problems and so

on.

41
 It is important that the management accountant has sufcient

familiarity with such techniques to recognize where there user can be

beneficial and cost efective. The use of relevant techniques should be

seen as a normal part of the work of modern management accountant

(Gerald E Thompson (1982)

2.7.6 uncertainty

Uncertainty according to Saasongu Nongo (2005) as a situation

occurs when a decision maker is not aware of all possible alternatives

and for those alternatives that are identified information is not

adequate to permit certain identification of probable outcomes

(consequences). Under this situation, the decision maker may have

strong options but lack adequate information to estimate the likelihood

of diferent outcomes or their alternatives. The influence of uncertainty

usually increases the longer the planning or decision period but it is

frequently present in short run circumstance as well. There may be

uncertainty about the measurement of data, material cost, the action of

competition, the economic climate, wage rate, performance level, the

42
rate of inflation or indeed any of the meriads of factors involved in a

decision.

43
 CHAPTER THREE

RESEARCH METHODOLOGY

3.1 Introduction

A research is a problem induced activity. It is simply a way in

which scholars investigates various problems with a view to

understanding and providing explanation. Aver(1958) contended that

it is essentially based on scientific inquiry whose procedure s include

observation of the available factors relating to a particular followed by

the formulation of a theoretical solution which is used as a basis for

experimental practical testing of theory to obtain evidence for a

conclusion or generalization which may or may not validate the theory.

A research methodology therefore, is the plan by which a research

activity is to be carried out. Each step in the plan, the activities or

subject to be used, the plan are all summarized under the methodology

.In fact, according to Abarry, 1986 the methodology is where the whole

44
 research is based. He further outlines various methods that can be

employed by researchers.

However, the appropriate method adopted in this research is

survey research and descriptive methods.

This chapter will also consider some data collection method with

a particular atention to the most suitable of the study.

3.2 Research Design

Research design according to Osuala, ( 2001) is the blueprint or

plan which determines the nature and scope of the study carried out

or proposed. The research design provides a guideline or framework

for an investigation in the process of trying to find a solution. it is the

main plan for the research project.

This study by nature is a survey research. According to Agburu

(2001) survey research may be described as the research involves large

and small population from which sample are chosen or studied in a

bid to find out relative incidence, distribution and interrelation of

45
 sociological or psychological variables. A survey research may also
be
called a sample survey.

The adoption of survey is as a result of the ease with which the

relationship between variables can be developed and hypotheses tested.

The method will logically explain the outcome of values as it relates to

the statement of the problem.

3.2.1 Population and sample size

The first step in obtaining a sample is to define the population. By

this, it means the identification of characteristics, which members of the

universe have in common and which would identify each unit as

having a member of a particular group (Osuola, 1993) to make for an

efective research work, the best way is to study the entire population of

elements (people/ things) or to study only a portion of the elements

from the large population of them which is called a sample( Black,

1976).

46
 The population of this study is the staf of Benue Brewery Limited,

to ensure that every staff is adequately represented, as the sample size,

purposive sampling technique was employed.

Thus, out of 230 staf of the four departments, questionnaires were

given to each department: production, finance, marketing and

engineering.

3.3 Method Of Data Collection

Data, according to Abarry, (1986) are not truth in them but are a

manifestation of a given situation. A researcher seeks an explanation by

subjecting the data to his inquisitive mind to facilitate his work. Data

used for this research could come from two broad sources namely

primary and secondary sources. The researcher in the course of

collection of data makes use of both primary and secondary data.

The main instrument used in the collection of primary data was

questionnaire administered to staf of the four departments of Benue

Brewery Limited. The questionnaire which is the source of primary was

designed in such a way that it permits comments from the respondents.

47
 The secondary data refers to information collected by other agencies

but with the utility for the research in his studies (Abarry, 1986). In this

research, secondary data will be gathered from the four departments of

the Benue Brewery Limited, libraries, journals, articles, company

records, and textbooks.

3.3.1 Method of Data Analysis

The analysis of the raw data of a research is the means by which the

researcher problem is answered and the hypotheses tested. Various

methods of data analysis include the chi- square, correlation analysis

and the Coehran’s question test. The method used varies with the

nature of the research work.

For the purpose of this research work, the chi- square test will used.

The response from the administered questionnaire was tabulated and

analysed. Relevant question will be used to test the various hypotheses

using the chi-square statistics.

According to Osuala ( 2001) the chi square is frequently used in

testing a hypothesis concerning the diference between a set of

48
 observed frequencies of a sample and a corresponding set of expected

or theoretical frequencies, the formula for calculating chi- square is as

follows;

X2 = ∑(o-e)2

Where

X2 = chi- square

∑ = Summation symbol

O = Observed frequency

E = Expected frequency

To list the hypothesis formulated, the following steps are

followed.

First, the null hypothesis and the alternative hypothesis are

stated.

Secondly, chi- square is computed between the observed

frequency and the expected frequency.

49
 Thirdly, based on the decision rule, the null or the alternative

hypothesis is accepted or rejected based on the chi- square result.

The level of significance is 5%.

Decision rule:

The general rule is that where chi- square (x2) calculated is

greater than the tabulated value; the null hypothesis is accepted while

the alternative is rejected.

Declaration of Known Problem with Design

The researcher used questionnaire as his instrument of data

collection.

i. The major problem encountered here is that the respondent is left alone

to freely respond to the question and would not usually fill in the right

thing because since his interviewer is not there with him to read his

non-verbal question, he hides a lot of facts.

ii. Some respondents would not return the questionnaire administered to

them.

50
 CHAPTER FOUR

DATA PRESENTATION, ANALYSIS AND INTERPRETATION

4.1 Introduction

It was established in the preceding chapter that data would be

collected using questionnaires and the hypotheses stated in chapter one

tested using chi-square (x2) model test. This chapter therefore, presents

analyses and interprets data collected from the field work using

questionnaires. The hypotheses are also tested and results interpreted.

4.2 Data Presentation Analysis

The data presented and analysed here are those obtained from

questionnaires administered to respondents. Hence, the table hereunder

shows the total number of questionnaires administered to the

respondents including those issued and those returned respectively.

51
TABLE 1: QUESTIONNAIRES ISSUED AND RETURNED
Respondent Questionnaires Questionnaire Percentage of
issued returned returned
questionnaires

Top managers 90 86 40%

Middle 85 80 37%
Managers

Employees 55 50 23%

Total 230 216 100%

Source: Field Survey, 2012.

Table 1 above indicates that out of the 230 questionnaires that were

issued, only 216 questionnaires were returned. The analysis as well as

interpretation of results will henceforth be based on the 216

questionnaires that were returned. The table below represents the

responses collected from the respondents from various questions asked.

52
 Question 6. Do cost and management accounting techniques

help in production process?

TABLE 2: TABULAR PRESENTATION OF DATA COLLECTED

Respondents Yes No Total

Top managers 16 70 86

Middle 66 14 80
Managers

Employees 39 11 50

TOTAL 121 95 216

Percentage 56% 44% 100%

Source: Field Survey, 2012.

The above indicates that 121 (representing 56%) out of total

number of 216 respondents submitted that cost and management

accounting techniques help in production processes. Whereas, 95

(representing 44%) out of the 216 respondents maintained cost and

management accounting techniques do not help in production

processes.

Question 7: Does cost and management accounting help in planning,

controlling and decision making in Benue Brewery Limited?

53
PRESENTATION OF DATA COLLECTED.

Respondents Yes No Total

Top managers 38 48 86
Middle 70 10 80
Managers
Employees 46 4 50
Total 154 62 216
Percentage 71% 29% 100%
Source; Field Survey, 2012.

The table above shows that out of a total of 216 respondents, 154

(representing 71%) submited that cost and management accounting

help in planning, controlling and decision making in Benue Brewery

Limited. However, 62 respondents (29%) rejected, submiting that cost

and management accounting does not help in planning, controlling and

decision making in Benue Brewery Limited.

Question 8: Are desirable conditions used for designing cost and

management accounting system in Benue Brewery Ltd? Consider again

the table below:

54
 TABLE 4: PRESENTATION OF DATA COLLECTED

Respondents Yes No Total

Top Managers 36 50 86

Middle 70 10 80
Managers

Employees 43 7 50

Total 149 67 216

Percentage 69% 31% 100%

Source: field survey, 2012

The above shows that 149 (representing 69%) out of the 216

respondents saw that desirable conditions are used for designing cost

and management accounting system in Benue Brewery Ltd. The

remaining respondents (67) submited that desirable conditions are not

used for designing cost and management accounting system in Benue

Brewery Ltd.

Question 9: Do power, raw material, and technology hinder the

efective use of cost and management accounting techniques in Benue

Brewery Limited?

55
TABLE 5: PRESENTATION OF DATA COLLECTED

Respondents Yes No Total

Top Managers 39 47 86

Middle 71 9 80
Managers

Employees 45 5 50

Total 155 61 216%

Percentage 72% 28% 100%

Source: field survey, 2012.

The table above shows that 155 respondents (representing 72%)

out of the 216 respondents submited that power, raw material,

technology hinder the efective use of cost and management accounting

techniques in Benue Brewery Limited.61 respondents (i.e 28%)

disagreed, holding that power, raw material, technology do not hinder

the efective use of cost and management accounting techniques in

Benue Brewery Limited .

Question 10: Does production afects the profit of the company?

56
 TABLE 6: PRESENTATION OF DATA COLLECTED.

Respondent Yes No Total

Top Managers 61 25 86

Middle 16 64 80
Managers

Employees 42 8 50

Total 119 97 216

Percentage 55% 45% 100%

Source: Field Survey, 2012.

Table 6 shows that 119 respondents (equivalent to 55%) out of

the 216 respondents submited that production affect the profit of the

company. On the other hand, 97 respondents (representing 45%) held

that production does not affect the profit of the company.

4.3 Testing of hypotheses.

It was established in chapter three (3) that hypothesis will be tested

at 5% error tolerance The decision rule still remains that the null

hypothesis will be accepted if calculated chi-square (x2) is less than the

chi-square tabulated, otherwise it be rejected.

57
 Tabulated value of chi-square:

DF=(R-1) (C-1)

= (2-1) (3-1) =2

From the chi- square distribution table, the value of chi square under

DF2 and 5% tolerance error is 5.99.This figure will henceforth be

marched with the calculated values of chi-square on each hypothesis to

ascertain its acceptability or otherwise.

HYPOTHESIS ONE (1)

Ho1: manufacturing companies do not use the desirable condition before

designing and installing a cost and management accounting technique.

Ha1: Manufacturing companies use the desirable condition before designing

and installing a cost and management accounting technique.

Related question from the questionnaire (question 8): Are

desirable conditions used for designing cost and management

58
accounting system in Benue Brewery Ltd? Consider again the table

below:

Table 7: Table of Responses

Respondent Yes No Total

Top 36 50 86
Managers

Middle 70 10 80
Managers

Employees 43 7 50

Total 149 67 216

Percentage 69% 31% 100%

From the above table, expected values may be calculated thus;

Row/Column Row Total X Column Total

Ground total

1, 1 149 x 86 = 59
216

1, 2 (149 x 80) ÷ 216 = 55

1, 3 (149 x 50) ÷ 216 = 35
2, 1 (67 x 86) ÷ 216 = 27
2, 2 (67 x 80) ÷ 216 = 25
2, 3 (67 x 50) ÷ 216 = 16

59
 Table 8: Contingency Table
Row/Column O E O-E (O-E)2 (O-E)2
E
1, 1 36 59 23 529 9
1, 2 70 55 15 225 4
1, 3 43 35 8 64 2
2, 1 50 27 23 529 20
2, 2 10 25 -15 225 9
2,3 7 16 9 81 5
X2 = 49

Since the calculated chi-square (x2c) is greater than the chi-square

(x2t), that is, 49>4.99, the null hypothesis will be rejected.

HYPOTHESIS TWO (2)

Ho2: The cost and management accounting techniques designed for

Benue Brewery Limited do not assist management in planning,

controlling and decision making.

Ha2: The cost and management accounting technique designed for

Benue Brewery Limited assist management in planning, controlling and

decision making.

60
 Related question from the questionnaire (question 7): Does cost

and management accounting help in planning, controlling and decision

making in Benue Brewery Limited?

Table 9: Table of Responses

Respondents Yes No Total

Top managers 38 48 86
Middle 70 10 80
Managers
Employees 46 4 50
Total 154 62 216
Percentage 71% 29% 100%
Source: Table 9
Calculation of expected values (expected frequencies)

Row/Column Row Total X Column Total

Ground total
1, 1 (154x86) ÷ 216 = 61
1, 2 (154x80) ÷ 216 = 57
1, 3 (154x50) ÷ 216 = 36
2, 1 (62 x 86) ÷ 216 = 25
2,2 (62 x 80) ÷ 216 = 23
2,3 (62 x 50) ÷ 216 = 14

61
 Table 10: Contingency Table

Row/Column O E O-E (O-E)2 (O-E)2

E
1, 1 38 61 -23 529 9
1, 2 70 57 13 169 3
1, 3 46 36 10 100 3
2, 1 48 25 23 529 21
2, 2 10 23 -13 169 7
2,3 4 14 -10 100 7
50

Since the calculated chi-square (x2) is greater than the x2 tabulated,

the null hypothesis will be rejected.

HYPOTHESIS THREE (3):

Ho3: Power, raw material, technology do not hinder the efective use of

cost and management techniques in Benue Brewery Limited.

Ha1: power, raw material, technology hinders the efective use of cost

and management accounting techniques in Benue Brewery Limited.

62
Related question from the Questionnaire (question 9):

Do power, raw material, technology hinder the efective use of cost and

management accounting techniques in Benue Brewery Limited?

Respondents Yes No Total

Top Managers 39 47 86

Middle 71 9 80

Managers

Employees 45 5 50

Total 193 23 216

Percentage 89% 11% 100%

Calculation of Expected Values (EV)

1, 1 (117 x 86) ÷ 216 = 47

1, 2 (117 x 80) ÷ 216 = 43

1, 3 (117 x 50) ÷ 216 = 27

2, 1 (97 x 86) ÷ 216 = 39

2, 2 (97 x 80) ÷ 216 = 36

63
 2, 3 (97 x 50) ÷ 216 = 23

Row/Column O E O.E (O-E)2 (O-E)2

E
1, 1 61 47 14 196 4
1, 2 16 43 -27 729 17
1, 3 42 27 15 225 8
2, 1 25 39 -14 196 5
2, 2 64 36 28 784 22
2,3 8 23 -5 225 10
X 2c = 66

From the contingency table above, the chi-square (x2) is 66. This is

greater than the tabulated chi-square (x2) which is 5.99. Therefore, the

null hypothesis is rejected.

4.4 Interpretation Of Results

The results obtained from testing the hypotheses are quite

revealing as briefly elaborated hereunder.

In testing hypothesis one (1), the null hypothesis, which states

that manufacturing companies do not use the desirable condition before

designing and installing a cost and management accounting technique

was rejected. This implies that manufacturing companies actually use

64
the desirable conditions before designing and installing a cost and

management accounting technique. Hence, the alternative hypothesis

which states that manufacturing companies use the desirable condition

before designing and installing a cost and management accounting

technique has been accepted.

Similarly, in the second hypothesis, the null hypothesis, which

states that cost and management accounting techniques designed for

Benue Brewery Limited do not assist management in planning,

controlling and decision making, has been debunked. This portends the

fact that cost and management accounting techniques are essential tools

for planning, controlling and managerial decision making, a position

which goes in tandem with the alternative hypothesis.

Finally, the result in testing hypothesis three (3) has it that

Power, raw material, technology do hinder the efective use of cost and

management techniques in Benue Brewery Limited. To this wise, the

null hypothesis, which states that power, raw material, technology do

65
not hinder the efective use of cost and management techniques in

Benue Brewery Limited has been rejected.

66
 CHAPTER FIVE

SUMMARY, CONCLUSIONS AND RECOMMMENDATIONS

5.1 Introduction:

In this concluding chapter, we shall discuss the research

findings and make recommendations to the company (Benue Brewery

limited). Finally, we shall draw conclusions and make suggestions for

further studies by interested persons.

5.2 Summary of findings

The main data sources for this research are company records

and questionnaires. The data gathered by using company records

enabled us to compare with the system of costing in operation at Benue

Brewery Limited. The data gathered by using questionnaires

administered to the staf of the company enabled us to have insight of

the costing system used by the company. After the comparison, we

discovered that the company is operating process costing system which

is the right costing system.

67
 Although process costing is suitable for the company taken into

consideration the mode of operation, process costing has not been

satisfactorily followed. The following observations were made during

the study. The cost of goods sold to the customers is not based on the

costing records but purely on the prices list which management review

from time to time.

It is also important to note that the price the company is selling

her product is much lower than the actual cost of production based on

the production report.

Benue Breweries does not maintain stock level by using reorder

level, minimum stock level and maximum stock level. However the

company carries out weekly stock summary.

The method of material costing used by the company is first-in-

first-out. The company keeps atendance register for their staf on a

daily basis. Also the company maintains a constant check on the

68
number and types of its employees are generally paid on a monthly

basis.

Breweries Limited recognized expenses as being either

common to more than one cost centre like electricity and water or just

one. The company also recognized three overheads namely

administration overheads, production overheads and marketing

overheads. The company considers all losses as normal and their cost is

borne by the good production.

The company calculates its unit costs on a monthly basis. at the

end of the month, the cost of material and labour for all the processes is

added together to determine the total cost. All costs incurred during the

month are divided by the number of units produced during the month.

It is more economical for Benue Breweries limited to produce

larger beer. This is because they always of high demand by the

customers there constitute a higher percentage of sales mix and sales

prices.

69
5.3 Generalization of findings

The main purpose of a costing system is to analyze and allocate

the expenditure of a business in such a way that is possible to ascertain

the cost of each job, contract, or process carried out, but this is by no

means its sole function. A well established costing system will

discharge functions like providing management making and in forward

planning. A properly established and implemented costing system

also helps management to distinguish between economic and

uneconomic activities include sources of wastages, provides

information in order to facilitate comparisons with estimates provides a

basis for the preparation of estimates and fixing of selling price and

revealing the cause of increase or decrease in the profit shown by the

management accounts.

This is particularly important if the business is to service and

also its short and long term objectives. To achieve this aim, the Benue

Brewery Limited established process costing. Process costing is suitable

70
 for the company mode of production; these are weaknesses in the

implementation of the system. This is because of the following reasons:

1. The material control system is not efcient, this is because the company

does not determine stock level of its raw materials

2. The method of calculating the cost of processing is not desirable since

the company does trace its neither profitability nor losses to their

sources.

3. Price of the product is fixed arbitrarily without making reference to the

costing statement resulting in selling below cost prices.

4. The company does not use standard costing techniques which

compares the “ standard cost ” of each product or services which the

actual cost determines the inefciency of the operation so that remedial

atention may be taken immediately.

5. The company does not use marginal costing techniques which

diferentiate variable from fixed cost that helps to determine as to

whether producing an additional unit cost are directly responsible for

71
 the output and the excess needed to cover both fixed and overheads

costs of units produced and the expected profit.

6. The company makes budget which are on intuition. The major problem

this has caused is the company produces more than it can sell resulting

in overstocking of finished products.

7. The company is not making much profit. This is primarily because the

selling price of her products is even lower than the cost of production.

This is due to the fact that the company has to tie price in order to

compete with other breweries.

5.4 Recommendations

The essence of process costing is the help in classification,

recording and appropriate allocation of expenditure for determination

of the cost of individual units produced .The cost is then related to sales

values management in decision making. Therefore, based on the

weaknesses enumerated in evaluation of findings, the following are

recommended in order to strengthen the costing system in use so that

72
 management can derive all possible benefits from implementing

process costing system.

1. The company should determine stock level by using mathematical or

statistic method in seting stock level, maximum stock level and

minimum stock level in selling out these stock levels, the following

factors must be taken into consideration:

a. The rate of consumption of the materials.

b. The time necessary to obtain delivery of the raw materials.

c. The re-order quantity for the material :

The formula are

Max C=maximum consumption during the period

Max R.P = maximum re-order period.

It should be noted that in re-fixing the re-order level, the worst possible

expected condition are used.

2. The price of the product of the company should based on the costing

statement and not arbitrary.

73
 3. The company should trace the profit and losses to their sources.

4. The company should introduce standard costing techniques: this will

help to determine inefciency of the operation so that remedial action

may be taken immediately.

5. The company should introduce marginal costing techniques: this will

enable the company to determine which is directly responsible for

output and the additional unit needed to produce at expected profit.

5.5 Recommendation for further studies.

1. More work can be carried out on method of fixing the stock level using

mathematical or statistical method.

2. Also more work can be carried out to establish the breakeven point for

Benue brewery limited.

5.6 Limitation of the Study

Many constraints sufced in the course of carrying out this study

among which were those relating to finance, time inability to get certain

data which were not available or considered ofcial secret by the

company.

74
The company busy schedule due to the nature of their job requirement

made it difcult for me to get access to the respondents staf and timely

administration and collection of questionnaire.

75
 REFERENCES

Abarry (1986) Understanding Research, Long Essay and Thesis

Writing. Nigeria . Unijos press limited.

Aver J.J (1959). An Introduction to Research. Newyork. Harper and

Row.

Azende T. (2011) Basic Statistics and Quantitative Techniques .

Makurdi. Aboki publishers.

Baty S (1974) Advanced Cost Accounting. London Maacdonald and

Evans ltd.

Bhatachagg et al (1980) Accounting for Management. New Delhi, vikas

Publishing House ltd.

Carter J. C (1983) Cost Control. New Jersey Prentice Hall.

Dupree D. (1978) Principles of Accounting. London, Mathew Mardor

Erhirhie wud (1989) Unpublished Lecture Manual, Unijos.

Hornegren C.T. et al(1990) Cost and Management Accounting, a

Managerial Emphasis. New Delhi. Prentice Hall.

John C.T et al (1990) Cost Accounting a Managerial Emphasis. New

Delhi Prentice Hall.

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Keerlinger F.N (1973) Foundations of Behavioural Research . London,

Holt kinchart and winiston.

Kneth G (1974) Breakthrough ,Practical Cost and Management

Accounting .Newyork Macgrew-hall.

Lynch R.M (1967) Accounting for Management Planning and Control.

Newyork Winthrop production.

Nachmias C et al (1967) Research Methods in the Social Science .London

St Martin Press Inc.

Tsegba I.N (2011) Unpublished Lecture Manual, BSU.

Ndagi J. O (1984) Essentials of Research Methodology for Nigeria

Education. Ibadan University Press ltd.

Vickery B.G (1971) Principles and Practice of Bookkeeping and

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Nachmias C et al (1967) Research Methods in the Social Science .London

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Whitehead G et al (1986) Success in Accounting and Costing

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Walpole R.T (1980) Introduction to Statistics. Newyork Macmillan

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77
 APPENDIX I

Department of Accounting,

Benue State University,

Makurdi.

Dear Sir/Madam,

I am an undergraduate student from Benue State University,

Makurdi. As part of the requirements for the award of Bachelor of

Science degree (B.Sc.) Accounting, I am therefore carrying a research on

the appraisal of the application of cost and management accounting

techniques in Nigerian manufacturing companies: A case study of

Benue Brewery Limited.

It will therefore be appreciated if you would kindly complete

this questionnaire. Please be assured that the information so requested

will be used both in confidence and solely for academic purpose.

Thanks for your anticipated cooperation.

78
 APPENDIX II

QUESTIONNAIRES

SECTION A: PERSONAL DATA

1. Sex (a) Male[ ] (b) Female [ ]

2. Marital status (a) [ ] Married b Single[ ]

3. Age group (a) 15-20[ ] (b) 21-40 [ ] (c) 40 and above[ ]

4. Qualification (a) GCE/ WAEC[ ] ( B) NCE [ ] ( c) ND/HND [ ] (d)

Others(specify) [ ]

5. Department (a) Production [ ] (b) Finance[ ] ( c) Marketing [ ] (d)

Engineering [ ]

6. Do cost and management techniques help in production process? (a)

Yes [ ] (b) No [ ]

7. Does cost and management accounting help in planning, controlling

and decision making in Benue Brewery Limited? (a)Yes [ ] b [ ]

8. Are desirable conditions used for designing cost and management

accounting system in Benue Brewery Ltd (a) Yes [ ] (b) No[ ]

79
9. Do power, raw material, technology hinder the efective use of cost and

management accounting techniques in Benue Brewery Limited?

10.Does production affect the profit of the company? (a) Yes [ ] (b) No [

11.Does the company produce more than one product and other

specification? (a) Yes [ ] (b) No [ ]

80