ABSTRACT

The study investigated on the effect of cost management on the profitability of

Nigeria industries. The major objectives of the study are to ascertain the level of

adherence to cost management practices in the manufacturing industries, to

determine the effects of various costs on the profitability of manufacturing

industries in Nigeria and to determine the factors that affect cost management

practices in manufacturing industries. To achieve the objectives of the study,

survey research design method was adopted. The researcher adopted primaly data

in getting the required information. The population of the study is made up of 207

respondents while the sample size is made up of 136 after adopting Taro Yamane

formula. However, a total number of 136 questionnaires were administered to the

respondents, 120 were returned while 16 were void. In testing the hypotheses,

multiple regression analysis was used. The findings revealed that there is a

sign flcant effect of cost management on the profitability of manufacturing firms in

Nigeria. The findings further revealed that there is sign ficant relationship between

cost reduction and the profitability of manufacturing firms in Nigeria. The

researcher recommends that effective cost control, including good responsibility

accounting system, should be established by all business concerns in the country.

The researcher further recommends that cost control should be in place in all

departments, most especially the production department, in order to make sure that

units offinished goods are properly accounted for.