Open AccessCost accounting: A tool for the management decision making process in Nigeria
Author(s) -
Olanitori Idowu Paul,
Fadakinte Bukola Veronica,
Olemija Temidayo Lawrence
Publication year - 2021
Publication title -
liberal arts and social sciences international journal
Language(s) - English
Resource type - Journals
ISSN - 2664-8148
DOI - 10.47264/idea.lassij/5.2.10
Subject(s) - cost accounting , management accounting , activity based costing , remuneration , business , accounting , profitability index , accounting information system , valuation (finance) , order (exchange) , control (management) , process (computing) , decision making , operations management , marketing , economics , computer science , finance , management , operating system , purchasing
The study, cost accounting, as a tool for management decision making process is targeted at exploring the various ways which cost accounting information could help the management of enterprises especially manufacturing and processing companies in the formation of polices and making of sound and reliable decisions. In order that this purpose could be proven, the researcher formulated various relevant research questions and also two major hypotheses were also formulated. Interview was conducted with the aid of instrument known as questionnaires which were administered to the staff of Tisco’s Pharmaceutical. Chi-square (X2) method was used for testing the hypotheses under the research. Findings exposed that cost accounting is an aid to management decision making. Also, to be clear of every sentiment, relevant literatures complied in authorities in the relevant fields were reviewed. The opinion of authorities was not different, showing that costing information is necessary for fixing selling price, valuation of inventory, inventory control, labour remuneration, waste reduction, capacity utilization, cost control ascertainment of profitability. Thus, the study proves that cost accounting is a tool for management decision making process in any organisation either in public and private sector.