CERTIFICATION

This is to certify that this research work was written by Agboola Halimat Sadia
(Matriculation Number 15S01/032) in partial fulfillment of the requirement for the award
of Bachelor of Science (B.Sc) Degree in Accounting at the Department of Accounting
and Finance, Faculty of Management Science, Ajayi Crowther University, Oyo, Oyo
State, Nigeria.

…………………….. ……………………….
DR. OYEDELE OLORUNTOBA DATE
(Project supervisor)

…………………….. ………………………..
PROF. AA. OWOJORI DATE
(Head of Department)

…………………….. …………………………
EXTERNAL EXAMINER DATE

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 DEDICATION

This research work is humbly dedicated to Almighty Allah, my late grandpa and to my
beloved parents who in their love, encouragement, support and endurance have made this
project successful.

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 ACKNOWLEDGEMENT

I give glory to the Almighty Allah, the beneficent and the merciful for his provisions,
support and protection in the course of carrying out this research work.

I wish to thank my parents, Mr and Mrs Agboola and also my siblings Hakeem, Farida,
Mariam and Monsurat for their support and encouragement in making this research work
successful. May Almighty Allah give them long life (Amin).

I express my gratitude to my supervisor Dr O. Oyedele for providing me with intellectual

support and guidance which have influenced my thought during the research. I also
express my gratitude to my H.O.D Professor A. Owojori for the knowledge bestowed
upon me as regards the project topic and also to other lecturers of the department of
Accounting and Finance, Ajayi Crowther University.

My sincere gratitude goes to Akano Opeyemi Olamilekan for his academic support,
advice and understanding during the research work. May Almighty Allah bless him and
grant him his heart desires.

Lastly, my appreciation goes to Omolade, Gbemi, Ifeoluwa, Omoyeni, Remilekun, Dave,

Jare, Tofunmi and my other friends. To you all, I say thank you, May Almighty Allah
bless you all .

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 TABLE OF CONTENT
Title page
Certification i
Dedication ii
Acknowledgement iii
Table of content iv-vi
List of tables vii
Abstract viii

CHAPTER ONE: INTRODUCTION

1.1 Background to the Study
1.2 Statement of the Problem
1.3 Research Questions
1.4 Objectives of the Study
1.5 Research Hypothesis
1.6 Significance of the Study
1.7 Scope of the Study
1.8 Limitation of the study
1.9 Operational Definition of Terms

CHAPTER TWO: LITERATURE REVIEW

2.1 Preview
2.2 Conceptual Issues
2.2.1 The Concept of Cost
2.2.2 The Concept of Accounting
2.2.3 History of Cost Accounting
2.2.4 The Concept of Managerial Effectiveness
2.2.5 Cost Accounting and Managerial Effectiveness
2.2.6 Cost Accounting Techniques Adopted by Manufacturing Companies

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2.2.6.1 Marginal Costing
2.2.6.2 Absorption Costing
2.2.6.3 Major Differences between Marginal Costing and Absorption Costing
2.2.6.4 Role of Contribution
2.2.6.5 Cost-Volume-Profit Analysis
2.2.6.6 Importance of Cost-V0olume-rofit Relationship
2.2.6.7 The Concept of Break-even Analysis
2.2.6.8 Standard Costing
2.2.6.9 Standard Cost as Control Mechanisms
2.2.6.10 Budgeting and Budgetary Control
2.2.6.10.1 Definition of Budget
2.2.6.10.2 Types of Budget
2.2.6.12 Just-In-Time System
2.2.6.13 Activity-Based Costing
2.2.6.14 Target Costing
2.2.6.15 Lifecycle Costing
2.2.6.16 Through-Put Accounting
2.2.6.17 Backflush Costing
2.2.6.18 Kaizen Costing
2.3 Theoretical Review
2.3.1 Contingency Theory
2.3.2 Theory of Cost Behaviour
2.4 Empirical Review
2.4.1 Limitations of the Past Studies and Research Dimensions

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CHAPTER THREE: RESEARCH METHODOLOGY
3.1 Area of the Study
3.2 Research Design
3.3 Sources of Data
3.3.1 Primary Source of Data
3.3.2 Secondary Source of Data
3.4 Population of the Study
3.5 Sample Size and Sampling Techniques
3.6 Research Instrument
3.7 Method of Data Analysis
3.8 Model Specification

CHAPTER FOUR: RESULTS AND DISCUSSION

4.0 Preamble
4.1 Presentation of Data
4.2 Regression Analysis
4.2.1 Statistical Test of Significance of Parameter Estimated
4.2.2 Correlation
4.3 Summary and Interpretation of Findings

CHAPTERFIVE: SUMMARY, CONCLUSION AND RECOMMENDATION

5.1 Summary
5.2 Conclusion
5.3 Recommendation
REFERENCES
APPENDICES

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 ABSTRACT

The study examined the impact of cost accounting on the profitability and managerial
effectiveness of manufacturing companies. Specific objectives of the study established the
relationship between cost accounting and profitability; determine the impact of cost
accounting on profitability of manufacturing companies; determine the effect of cost
accounting on managerial effectiveness; ascertain whether cost techniques are relevant
in controlling costs in manufacturing companies. The research design used for the study
was survey method. The sample size was 88 respondents from a population that consists
of staffs of Nigerian Breweries, Ibadan, Oyo State. Questionnaire was used as the
research instrument to obtain relevant information necessary for the study. The study
employed Inferential statistics {correlation and Analysis of Variance (ANOVA)} as
method of analysis for the four research hypothesis. The study found that cost accounting
practices have a joint significant effect on the financial performance of manufacturing
companies at 0.05 confidence level of significance. The sum of squares also confirms that
the regression model explained less than residual. The study further discovered that
information for decision making practices was established as having the greatest impact
on profitability of manufacturing companies in Nigeria. In addition, the study found out
that holding costing, budgeting, performance evaluation, information for decision
making, strategic, and financial performance constant, financial performance will be
0.706. Based on the findings, the study concluded that Information for Decision Making
practices is the most highly used cost accounting practice amongst manufacturing
companies in Nigeria followed by Strategic Analysis, Budgeting, Performance Evaluation
and Costing and recommended the creation and enhancement of awareness among firms
of the importance of information for decision making as this is the most highly used cost
accounting practice amongst manufacturing companies in Nigeria.

Keywords: financial performance, budgeting, costing, information for decision making,

strategic analysis.

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