Page Length: 45

Size: 102 KB

Format: PDF & Word



This research work is conducted with a view to determine the effect of cost control in the profit of an Organization. (A case study of ViJu Industries Nigeria limited.

The objective of this research work has this mainly to embrace the positive idea of cost control in a bid to achieve desired target, to aid the manufacturing conies to adopt profit planning or budgeting in concise manner and exact analysis of budgeting as an aid to resources utilization, also to improve cost control system   by adequate control measure in ensuring that rational optimum asset utilization to aid profit attainment and issue completed with control of organization   resources.

The sample size of this work consists about 20 respondents who work in VIJU Industries Nigerian limited.

Questionnaires were administered to collect relevant data from them.

However the data collected were analyses using sample percentage and the hypotheses tested using the chi-square statistical tool.

Furthermore, the result of analysis showed that cost control increases the profit organization; it also revealed that social accounting has impact on cost control.

Finally, based on the findings, it was recommended that for any benefit of cost control plan to be reaped, there must general specific  restricting of most organization with responsibility in order to ensure a unique incorporation changes, which communication should be left open at all level to enhance performance.









TITLE PAGE                                                                                                      i

CERTIFICATION                                                                                           ii

DEDICATION                                                                                                  iii

ACKNOWLEDGEMENT                                                                              iv

ABSRTACT                                                                                                      v

TABLE OF CONTENTS                                                                                vi



  • STATEMENT OF PROBLEM                                                                        3
  • OBJECTIVE OF THE STUDY                                                                       4
  • SCOPE OF THE STUDY                                                                                5


CHAPTER TWO                                              

2.0   LITERATURE REVIEW                                                                                  9

2.1   INTRODUCTION                                                                                               9

2.2   THE CONCEPT OF COST CONTROL                                                       9

2.3   CLASSIFICATION OF COST                                                              12

2.4   COST ORIENTED PRICING                                                                       14

2.5   CURRENT LITERATURE ON MODE / THEORY                                   14

2.6    COST CONTROL TECHNIQUES                                                             16

2.7    COST REDUCTION TECHNIQUES                                                          17


2.9       SUMMARY                                                                                                      20



RESEARCH METHODOLOGY                                                                         21

3.1   INTRODUCTION                                                                                        21

3.4   RESEARCH DESIGN                                                                                  21

3.5   POPULATION OF THE STUDY                                                                22

3.6   SAMPLE SIZE                                                                                             22

3.7   SAMPLE AND SIMPLING TECHNIQUES                                              22

3.8   DATA COLLECTION INSTRUMENT                                                      23

3.9   METHOD OF DATA CELLECTION TECHNIQUES                              24

3.10 METHOD OF DATA ANALYSIS                                                             24



4.0   INTRODUCTION                                                                                       26



ON THE PROFIT OF AN ORGANIZATION                                                 27

4.3    TEST OF HYPOTHESES                                                                          29



5.1    SUMMARY                                                                                               34

5.2    CONCLUTION                                                                                          34

5.3   RECOMMENDATION                                                                               35

5.4   SUGGESTIONS FOR FURTHER STUDY                                              36


REFRENCE                                                                                                        37

QUESTIONNAIRE                                                                                          38                                     







Cost control is a vital instrument for the survival of any business organization. In furtherance of these however, similarities and dissimilarities would be examined and observation made.  The control of cost is very necessary to the successful operation of different business organization.  Business entity is set up as an economic institution with profit making as a primary business objective.  Achievement of profitability objectives is a concern of every business for no matter the argument for the pace of profitability in modern business it still remain the primary and the only measure of corporate efficiency and vehicle for survival in competitive are turbulent business environment.

To achieve this profitability objective, attempts are made by various business concerns to bring cost to its bearest minimum and the essence of this cost awareness has been further amplified by the current high cost of raw material are other production cost.

This project is set to investigate the effect of cost control on the profit of an organization with special reference to VIJU Industrial Nigeria Limited.

This topic will play a significant role in an organization especially manufacturing firms, cost control is established for the ultimate goal of profit making.

Profit making is an important goal that most organizations through the use of would need to achieve various organizational strategies; the best method is to control the cost through the use of budgeting and planning decision for cost control. Cost Accountant is not concerned simply with recording what actual cost was, but also:

Estimating what costs are expected to be in the future and

Determining what cost should have been.

Generally, a cost is the value of economic resources used as a result of production or doing the thing cost. However, chartered institute of Management Accountants (CIMA) defined cost as ‘’the amount of expenditure (actual or national) incurred on or attributable to a specified thing or activity’’

Cost system used in one company may differ from one company to another depending on the organizational design and structures. Cost control refers to measures put in the place by management to monitor operations such that cost incurred do not deviate significantly from those pre-planned or expected.

Hence, cost control is an active concept which attempt to put in place adequate monitor to keep tract of cost behavior without a dent on the effectiveness of organization via such frugal outlook through a practical philosophy of most firm is to ensure adequate monitor is placed on sensitive cost components yet such philosophy in application got to give respect to the fact of organization composition to avoid system friction and dis-functional state.

Cost control implies the comparison of actual cost with standard cost (predetermine cost), then making a systematic investigation of deviation notices beyond an allowed range, though a scientific and tailored variance analysis.

Hence, for a control system to achieve desired objectives there is the need for planned programmed of cost monitor to actually collate data need for comparison. Essential techniques and complete appraisal to determine effectiveness, with predetermined targets.

If a business is to stay in operation then it must watch its cost and plan ahead of the financial year to guide it’s through so as to be able to appraise its result in the light of such estimates made ahead. The systematic approach ensuring perpetuity on the part of the Organization in financial planning with respect to cost control and profit. This act alone can aid management in attaining its objectives with less stress on the resources of the organization.

Furthermore, a firm especially manufacturing should be able to achieve its objective by minimizing the use of resources (prime cost in order to maximize the wealth.

Thus, managing, coordinating and control the effort of the firms for achieving the organization objectives.


To study the problem which mitigate cost control on the profit of an organization? This problem will be tackled by looking at the following statement.

Does it reduce the unnecessarily high overheads and wastages?

Does inadequate cost control practices and its consequential increase in profit lead to shortage from expected target?

To what extent does inefficient and modernization of resources affect on companies and the entire Nigerian Economy.

Does the methods of controlling activities that increases the cost and being able to forecast profit cost and being able to actually possessing the skills to purse it through which can be said to be comparative ignorance of benefit accruing from such schemes.

The aim of this research study is to address these issues of cost control on the profit of an organization.


It remains an uncontroversial fact that anything done for a specific purpose has it importance.  This could be advantageous or disadvantageous.  This significance of this research lies ithe fact that the author is now better armed to face such challenges squarely in future, should be find himself in an establishment that needs her services.

Again it enable any organization to know the cost control techniques and the result of the application of such techniques.

Lastly it also serve any interested researcher into cost control measure as a good background for insight into this study.


For the purpose of this work which seeks to establish the needed reasons why such a study as is been conducted.

Firstly, the emphasis will be on the manufacturing companies that will enable them embrance the positive idea of cost control in a bid to achieved desired targets.

Secondly, it seemed that the idea of performance evaluation needs stressing better to actually achieve the goals of theories that have devoted consideration to developing such evolution criteria.

Thirdly, it is intended to aid the manufacturing companies to adopt profit planning or budgeting in a concise and exact analysis of budgeting as an aid to resources utilization.

Finally, it is hoped to improve cost control systems by adequate control measure in ensuring that there is rational optimum assets utilization to aid profit attainment and control of organization resources.


It is hope that the investigation into this area of study would enhance knowledge of the importance of cost control on the profit of an organization.

The effect of cost control on the production schedule of each product line and other line issues and the profit target from each product. In this study, emphasis is placed on more promising schemed in Nigerian manufacturing companies that will enable them embrace the positive idea of cost control in the bid to achieve desired targets. It is intended to aid the manufacturing companies to adopt profit planning or budgeting in a concise and exact analysis of variance as an aid to resources utilization.


The following research questions are raised in order to provide focus and guide for this research work;

Does manufacturing firm see the need for adopting control schemes as a starting point for achieving organization goals?

Does effective motivation on the part of management and subordinate improve the firm towards their goals and achievement?

Does cost control serve as a tool for effective management control in manufacturing industries?

Does social accounting have position impact on cost control scheme?

1.7      RESEARCH HYPOTHESES        

HO: Cost control does not increase organization profit.

HI:   Cost control increase organization profit.

HO:  Social accounting does not have impact on cost control.

HI:    Social accounting has impact on cost control.


However, sound the logic of flow of such as this might seem, the fact is that, it is fraught with the limitation inherent in study process itself which cannot be disputed.

Cost accounting in itself is a wide topic, which cannot be elaborated fully in a single research work. It will not be studied in deep because of some constraints like time, financial problem and proper planning.


COST CONTROL         This involves all efforts to keep the actual cost incurred in line with the pre-determined cost, and by the comparision of actual cost with there predetermined costs to revel unreasonable cost in order that step may be taken to identify and if possible remove the responsible factor.

COST UNIT:       A quantitative unit of product or service inrealtion to which cost are ascertain.

COST CENTRE:  A location function or item of enquiring in respect of which cost may be ascertained and related to cost unit for control purpose.  It is related to the unit where cost is accumulated.

MARGINAL COSTING:        A costing principle whereby variable cost are charged to cost unit and fixed cost attributable to the relevant period is written of in full against the contribution for that period.  It is amount of cost increased caused by unit increase in output.

COST:  The chartered institute of management accounting defined a cost as “the amount of expenditure incurred on or attributable to a specific thing or  activity”. This cost relates to past cost which has two components quantity used and price.

COST CONTROL: This refers to measures put in place by management to monitor operations such that actual cost remain within  acceptable limits, that is, to ensure that cost incurred do not deviate significantly from those pre-planned or expected. Cost control is an importance objective as escalating cost may impair achievement of the targeted level of profit.

PROFIT: Is the advantage or benefit attainable from business activities or production.              COST UNIT: This is a unit of quantity of product or service in relation to which costs may be as ascertained or expressed. Some examples are:

Unit of product: Contract, tons of cement, liters of liquid, book, pairs of shoes, caps, tables, pens, pencils, television sets, car etc.


VIJU Industrial Nigerian ltd commenced operation in 1990 and listed on the Nigerian Stock Exchange on April 20, 1979. The company is a subsidiary of  VIJU  S.A of Switzerland, which together with VIJU CWA Limited own VIJU Industries.

The nature of the business includes manufacturing, marketing and distribution of VIJU milk, and table water.

The construction started 2009 and the production of viju milk started October, 12 2013 and it comprises of various section, these includes:




  1. Production of VIJU milk section: it comprise of various and sub-department.
  2. Blowing section: this is the section that produces VIJU milk bottle.

Mixing section: this is the section where the ingredient are all mixed for the production of VIJU milk.

Filling section: this is the section where the bottle is been field and pass from blowing section

Covering section: this is d section where they cork the bottle, well package and sent to warehouse section & also sent for the distributors.

VIJU MILK- It contains 500ml,it also have various of milk which include orange, apple, pineapple, strawberry, banana, wheat, chocolate, and soya milk.

BOBO MILK- It contains 210ML. It also includes various type of milk e.g. orange, apple, strawberry, and pineapple.

Others section are

PVC AND PRINTING- production of nylon

WATER SECTION-where they treat water for the production of milk

GENERATION SECTION- it supply power to the entire community



DISCLAIMER: All project works, files and documents posted on this website, are the property/copyright of their respective owners. They are for research reference/guidance purposes only and some of the works may be crowd-sourced. Please don’t submit someone’s work as your own to avoid plagiarism and its consequences. Use it as a reference/citation/guidance purpose only and not copy the work word for word (verbatim). The paper should be used as a guide or framework for your own paper. The contents of this paper should be able to help you in generating new ideas and thoughts for your own study. is a repository of research works where works are uploaded for research guidance. Our aim of providing this work is to help you eradicate the stress of going from one school library to another in search of research materials. This is a legal service because all tertiary institutions permit their students to read previous works, projects, books, articles, journals or papers while developing their own works. This is where the need for literature review comes in. “What a good artist understands is that nothing comes from nowhere. The paid subscription on is a means by which the website is maintained to support Open Education. If you see your work posted here by any means, and you want it to be removed/credited, please contact us with the web address link to the work. We will reply to and honour every request. Please notice it may take up to 24 – 48 hours to process your request.

WeCreativez WhatsApp Support
Administrator (Online)
Hello and welcome. I am online and ready to help you via WhatsApp chat. Let me know if you need my assistance.