Assessment Of The Effect Of Cost Reduction Technique On The Profitability Of Small Scale Businesses In Abia
ABSTRACT
This research has studies the analysis of cost control and cost reduction techniques in improving profitability performance among small scale business enterprises in Abia State. In pursuant of this, available literature on the subject was reviewed and other information necessary for the completion of this study were obtained from questionnaire returned by a sample survey of 80 entrepreneurs in Abia State. In a statistical dimension, (secondary) data of direct materials and labour costs as well as the total variable costs and profitability indices were collected which were used to test the stated hypothesis, using a simple regression analysis. The findings established were that fall in the costs of direct labour and direct materials will lead to fall in total variable (prime) costs of small scale Business enterprises, which leads to improvement (increase) in profitability performance. That entrepreneurial education and cooperative formation, among others, are some of the ways to solve the problems facing general entrepreneurial performance in the tropics. Based on the above, the research recommended that cost reduction and cost control techniques should be adopted not only to enhance profitability improvement but also for strategies cum competitive survival of small scale Businesses in Abia State, and beyond.
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CHIDINMA, I (2021). Assessment Of The Effect Of Cost Reduction Technique On The Profitability Of Small Scale Businesses In Abia. Mouau.afribary.org: Retrieved Nov 01, 2024, from https://repository.mouau.edu.ng/work/view/assessment-of-the-effect-of-cost-reduction-technique-on-the-profitability-of-small-scale-businesses-in-abia-7-2
IHEANACHO, CHIDINMA. "Assessment Of The Effect Of Cost Reduction Technique On The Profitability Of Small Scale Businesses In Abia" Mouau.afribary.org. Mouau.afribary.org, 28 Jun. 2021, https://repository.mouau.edu.ng/work/view/assessment-of-the-effect-of-cost-reduction-technique-on-the-profitability-of-small-scale-businesses-in-abia-7-2. Accessed 01 Nov. 2024.
IHEANACHO, CHIDINMA. "Assessment Of The Effect Of Cost Reduction Technique On The Profitability Of Small Scale Businesses In Abia". Mouau.afribary.org, Mouau.afribary.org, 28 Jun. 2021. Web. 01 Nov. 2024. < https://repository.mouau.edu.ng/work/view/assessment-of-the-effect-of-cost-reduction-technique-on-the-profitability-of-small-scale-businesses-in-abia-7-2 >.
IHEANACHO, CHIDINMA. "Assessment Of The Effect Of Cost Reduction Technique On The Profitability Of Small Scale Businesses In Abia" Mouau.afribary.org (2021). Accessed 01 Nov. 2024. https://repository.mouau.edu.ng/work/view/assessment-of-the-effect-of-cost-reduction-technique-on-the-profitability-of-small-scale-businesses-in-abia-7-2