ABSTRACT

This research aimed al three broad objectives thus, to establish a framework that would guide accountants and managers in the application of standard costing technique to determine how far standard costing principles advocated are used in production by manufacturing firms to enhance corporate profitability and to examine how the technique may be use as an integral part of business administration philosophy. The method of research adopted was non probability samplings design using random sample. It used majority chi-squared technique as a statistical technique for the test of hypotheses. The sample size was 40 in all. The finding as established include that standard costing technique is used to foster management effectiveness and hence corporate profits, use in the areas of performance evaluation, cost control, inventory control and provides motivation, encouragement and ensure efficiency. It also reduces inefficiency in activities. This research offers some recommendations that motivation should be provided, a clear plan should be drawn and measures taken for correction of variations. Cost accountant should have competent supervision and full interaction with factory worker and that current and attainable standards should be used in firms. Also that managers should correlate technical specifications and scientific measured for materials and labour and routine checking of plant and machine ensured to prevent break down and idle machine hours.