Effect Of Cost Reduction On The Profitability On A Manufacturing Company In Nigeria (A Study Of Pz Nigerian Inaba, Abia State)

ESSIET GLORY RAYMOND MOUAU/ ACC/14/24788 | 87 pages (14302 words) | Projects

ABSTRACT

This study focused  on the examination of the effect of cost reduction on the profitability of a manufacturing company in Nigeria.  specifically, it investigated the following;   effect  of  effect  of  cost  reduction  on  the profitability   of  a manufacturing company; the cost reduction techniques applicable in a manufacturing company,· and factors  limiting  cost reduction  strategies  in a manufacturing company. Hypotheses wereformulated and tested at 0. OJ  level of significance. It  adopted  the survey  research design  which  include research question, interview and rating scale were used to analyse the effect of cost reduction on the profitability of PZ manufacturing company. Data for the study were sourced through the primary source of data.  47 staff of PZ Manufacturing Company were studied. The Descriptive and inferential statistics was used as the analytical tool, the study revealed that there is a significant relationship between cost reduction and the profitability of a manufacturing company and that there is a significant relationship between cost reduction techniques and the profitability of a company. Thus, the study conclusively argues that cost reduction ensures the survival and growth of manufacturing companies by improving the efficiency and preserving  its competitive  capability.  The researcher relying on the findings recommended that Manufacturing companies should always reduce cost irrespective of their state of performance,  information should be passed at all levels to enhance the awareness of those cost reduction techniques; finally, that Management should give a restricted limit to waste by looking/or other processes where it will be useful to increase the value of the company and thereby reduce cost.

TABLE OF CONTENTS
Title page                                                                                                                 I
Declaration                                                                                                              11
Certification                                                                                                             111
Dedication                                                                                                                IV 
Acknowledgements                                                                                                 v 
Table of contents                                                                                                     VI 
List of tables                                                                                                            IX 
Abstract                                                                                                                   x

CHAPTER ONE: INTRODUCTION
1.1 Background  to the Study 1
1.2 Statement of the Problem 2
1.3 Objectives of the Study 4
1.4 Research Questions 5
1.5 Research Hypotheses 5
1.6 Scope of the Study 6
1.7 Significance of the Study 6
1.8 Definition  of terms 7

CHAPTER TWO: LITERATURE  REVIEW
2.1     Conceptual Framework                                                                                8
2.1.1  Definition of Cost and total Cost                                                                8
2.1.2  Definition of Cost Reduction                                                                      9 
 2.1.3  The Need for Cost Reduction                                                                      10
 2.1.4  How to Reduce Cost                                                                                    11
2.1.5  The Cost Reduction Process                                                                        1
2.1.6  Definition  of Cost Control                                                                           13
2.1.7    Relationship  between Cost Reduction and Cost Control                          14
2.1.8    Budget, Budgetary  Control and Standard Costing                                     15
2.1.9  Determination  of Profitability  in a Manufacturing  Company                   16
2.1.10 Performance  Evaluation  Based on Profitability                                         17
2.1.11 Factors to be considered when Reducing Costs                                         18
2.1.12Problems    Associated  with Cost Reduction                                                 19
2.1.13    Cost Reduction  Techniques                                                                         20
2.l.14Cost  Reduction  Techniques  as Applied to the Elements  of
Material Cost Reduction                                                                              23
2.1.15 Achieving  Profitability  through Materials Management                           30
2.1.16Cost  Reduction  Strategies Used by Nigerian Companies                         34
2.l.17Cost    Reduction  Techniques  as a means of Improving  Profitability
on Manufacturing  Companies                                                                      38
2.2       Theoretical  Framework                                                                                40
2.3     Empirical Review                                                                                         41

CHAPTER THREE: RESEARCH  METHODOLOGY
3.1     Research Design                                                                                           45
3.2     Method of Data Collection                                                                          45
3.2.1  Primary Data                                                                                                 45
3.2.2  Secondary Data                                                                                            46
3.3     Population  of the Study                                                                               46
3.4     Sample and Sampling Techniques                                                              46
3.5    Instruments                                                                                                   48
3.6   Validity of the Instrument                                                                           48
3.7   Reliability  of the Instrument                                                                       48
3.8   Limitation  of the Study                                                                               49
3.9   Data Analysis Procedure                                                                             49

CHAPTER     FOUR:       DATA      PRESENTATION,      ANALYSIS       AND INTERPRETATION
4.1     Presentation  and Analysis of Data                                                              51

CHAPTER FIVE:  SUMMARY  OF FINDINGS  CONCLUSION AND RECOMMENDATIONS
5.1 Summary of Findings                                                                                       69
5 .2 Conclusion                                                                                                         70
5 .3 Recommendations                                                                                             71
REFERENCES 

Overall Rating

0.0

5 Star
(0)
4 Star
(0)
3 Star
(0)
2 Star
(0)
1 Star
(0)
APA

ESSIET, A (2021). Effect Of Cost Reduction On The Profitability On A Manufacturing Company In Nigeria (A Study Of Pz Nigerian Inaba, Abia State). Mouau.afribary.org: Retrieved Oct 30, 2024, from https://repository.mouau.edu.ng/work/view/effect-of-cost-reduction-on-the-profitability-on-a-manufacturing-company-in-nigeria-a-study-of-pz-nigerian-inaba-abia-state-7-2

MLA 8th

ACC/14/24788, ESSIET. "Effect Of Cost Reduction On The Profitability On A Manufacturing Company In Nigeria (A Study Of Pz Nigerian Inaba, Abia State)" Mouau.afribary.org. Mouau.afribary.org, 08 Jan. 2021, https://repository.mouau.edu.ng/work/view/effect-of-cost-reduction-on-the-profitability-on-a-manufacturing-company-in-nigeria-a-study-of-pz-nigerian-inaba-abia-state-7-2. Accessed 30 Oct. 2024.

MLA7

ACC/14/24788, ESSIET. "Effect Of Cost Reduction On The Profitability On A Manufacturing Company In Nigeria (A Study Of Pz Nigerian Inaba, Abia State)". Mouau.afribary.org, Mouau.afribary.org, 08 Jan. 2021. Web. 30 Oct. 2024. < https://repository.mouau.edu.ng/work/view/effect-of-cost-reduction-on-the-profitability-on-a-manufacturing-company-in-nigeria-a-study-of-pz-nigerian-inaba-abia-state-7-2 >.

Chicago

ACC/14/24788, ESSIET. "Effect Of Cost Reduction On The Profitability On A Manufacturing Company In Nigeria (A Study Of Pz Nigerian Inaba, Abia State)" Mouau.afribary.org (2021). Accessed 30 Oct. 2024. https://repository.mouau.edu.ng/work/view/effect-of-cost-reduction-on-the-profitability-on-a-manufacturing-company-in-nigeria-a-study-of-pz-nigerian-inaba-abia-state-7-2

Related Works
Please wait...