ABSTRACT
The topic of this research is on the application of standard
costing technique with respect to cost reduction and profit maximization. The
purpose of this study was to discover if the application of standard costing
techniques has any effect on profitability and cost reduction, to explore the
relationship between standard costing and the profitability of manufacturing
companies and to examine the application of standard costing system to loss
minimization of manufacturing companies. The design of this study is
descriptive survey method and the study was conducted at Nestle Nigeria Plc
which is the case study of this research work. The instrument of data
collection was analyzed using the multiple regression method. The researcher
discovered the following as his data findings application of standard costing
leads to profit maximization and cost reduction, standard costing technique
helps manufacturing companies to manage and handle their stock to a required
level as well as erasing lapses and machine break down, it also study shows
that standard costing technique leads to early detection of inefficiency which
leads to increase in productivity and profitability of the company and setting
of standards makes for easier supervision thereby serving as a guide for
efficiency and effectiveness even in the absence of supervisors. The researcher
recommends that the line managers of the company should be sensitized on the
need for the application of standard costing which results to increase in the
profit maximized and reduction in the cost and the need for proper application
of standard costing should be encouraged by regulatory bodies. This should be
facilitated by ICAN and also practiced during the mandatory continuing
professional education (MCPE). The researcher came to a conclusion Standard
costing techniques leads to achievement of early detection of inefficiency
thereby producing a profit which is a measure of organizational profitability
and standard costing have effect on cost reduction in the areas of material
costing, overhead, maximizing labour time of work by providing motivational
incentives and performance evaluation.
MADUBUKO, I (2021). Application Of Standard Costing Technique With Respect To Cost Reduction And Profit Maximization (A Case Study Of Nestle Plc). Mouau.afribary.org: Retrieved Oct 31, 2024, from https://repository.mouau.edu.ng/work/view/application-of-standard-costing-technique-with-respect-to-cost-reduction-and-profit-maximization-a-case-study-of-nestle-plc-7-2
IFEANYI, MADUBUKO. "Application Of Standard Costing Technique With Respect To Cost Reduction And Profit Maximization (A Case Study Of Nestle Plc)" Mouau.afribary.org. Mouau.afribary.org, 23 Nov. 2021, https://repository.mouau.edu.ng/work/view/application-of-standard-costing-technique-with-respect-to-cost-reduction-and-profit-maximization-a-case-study-of-nestle-plc-7-2. Accessed 31 Oct. 2024.
IFEANYI, MADUBUKO. "Application Of Standard Costing Technique With Respect To Cost Reduction And Profit Maximization (A Case Study Of Nestle Plc)". Mouau.afribary.org, Mouau.afribary.org, 23 Nov. 2021. Web. 31 Oct. 2024. < https://repository.mouau.edu.ng/work/view/application-of-standard-costing-technique-with-respect-to-cost-reduction-and-profit-maximization-a-case-study-of-nestle-plc-7-2 >.
IFEANYI, MADUBUKO. "Application Of Standard Costing Technique With Respect To Cost Reduction And Profit Maximization (A Case Study Of Nestle Plc)" Mouau.afribary.org (2021). Accessed 31 Oct. 2024. https://repository.mouau.edu.ng/work/view/application-of-standard-costing-technique-with-respect-to-cost-reduction-and-profit-maximization-a-case-study-of-nestle-plc-7-2