Marginal Costing As An Essential Tool For Decision Making In A Manufacturing Company (a Case Study Of Anamco Enugu)
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TABLE OF CONTENTS
Title page i
Certification ii
Dedication iii
Acknowledgment iv
Preface v
Abstract ix
Table of contents xii
CHAPTER ONE
1.0 Introduction 1
1.1 Background of study 1
1.2 Statement of problem 4
1.3 Objectives of study 5
1.4 Significance of study 5
1.5 Scope of the study 6
1.6 Limitation of study 7
1.7 Definition of terms 7
1.8 Hypothesis 9
CHAPTER TWO
2.0 Review of Related Literature 10
2.1 Marginal Costing 10
2.2 The Principles of Marginal costing 15
2.3 Marginal costing and decision making 20
2.3.1 Acceptance of special order 24
2.3.2 Add or Drop Decision 27
2.3.3 Make or buy Decision 31
2.4 The contribution margin theory 36
2.5 Marginal versus Absorption costing 39
2.6 Marginal costing and profit 46
2.7 The breakdown Analysis and Decision making 48
2.8 Advantages and Disadvantages
of marginal costing references 61
CHAPTER THREE
3.0 Research Design and Methodology 63
3.1 An Overview 63
3.2 Sources of Data 64
3.3 Sample used 65
3.4 Method of Investigation 65
3.5 Problem encountered in data collection process 67
CHAPTER FOUR
4.0 Data Presentation and Analysis 68
4.1 An Overview 68
4.2 Analysis of Responses 69
4.3 Hypothesis 83
CHAPTER FIVE
5.0 Findings, Recommendation and Conclusion 87
5.1 Summary of Findings 87
5.2 Conclusion 88
5.3 Recommendations 90
CHAPTER ONE
1.0 INTRODUCTION
1.1 BACKGROUND OF STUDY
The reality of modern business management in a free enterprise economic system is the level of competition among all the enterprise, where only the filter enterprises survive. The motive for maximization of profit in business and quest for Wealth Creation being in vogue, management continues to remain under increasing obligation to improve its share of the market, its assets, its credit worthiness and its overall potential.
These in turn require an improvement in the quality of decision. Therefore in order to respond effectively to the challenges of time, management requires good factors in business decisions.
This research work is a real attempt to investigate into the principle and practice of marginal costing as an essential tool for decision-making in Manufacturing Companies using Anambra Motor Manufacturing Company (ANAMMCO) as a case study.
This study will critically examine the following:
- The condition for analyzing cost into fixed and variable components.
- How the cost are normally controlled,
- And how management decision in aided under the technique.
An appraisal is necessary in order to determine effectiveness and efficiency of the management accounting technique. In carrying out this research work, data was got from questionnaire.
Information and analysis of the data, using the percentage method to analyze the response elicited from respondents. Also the personal observation methods were used, together with relevant information from libraries.
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PROJECT DETAILS |
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| Project ID | AC2078 |
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