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CHAPTER ONE

INTRODUCTION

1.1  BACKGROUND T0 THE STUDY

The main aim of this research work is an attempt to verify the indiscriminate increase in the prices of commodities produced in this part of the country by manufacturing organization and companies.  This continuous rise in prices has attracted the attention of many citizens, mostly those who have ignorant of the adverse effect of this continuous rise in the prices on the citizen and the country economy. This research paper will therefore aim at giving a comprehensive account of the control of cost in the production field with emphasis on the manufacturing organization.  The attribute of every organization is the pursuit of a goal and this goal exists in different forms.  It is evident, therefore that every manufacturing organization be it sloe, partnership, corporation, among others have an objective and this primary objective is profit maximization other objective such as social is purely secondary and solely depend on the profit.

Profit is the surplus or excess of to all income over total cost during a specific period of time.  It therefore follows that before any organization can make profit, they must exercise control over their production and services. There are other one still under production and the best ingredients are used for production in PRODA. Administration and Staffing.  Although the government Board has responsibility for general management as set out in the natural science and Technology, Act 1980, the day to day running of the institute is the function of the direct or research. Administration, the institute is organized into divisions science, Engineering, ceramics and administration. The activate division form the point of view of research and development functions are science, Engineering  and ceramics. In order, both their research and development work and their production work be given equally emphasis each of these activities division is in turn organized into research units.

1.2   STATEMENT OF THE PROBLEM

Many organizations operating in our country today try every effort to make use of they break even in order to make profit, still al these efforts seems t be worthless. They reduce their cost in order to maximize as suppose to be, why do so many organization still not breakeven, not to talk of making profit after all their efforts to control cost? Does it mean that their cost control is not effective?  The researcher will give answer to these questions in his subsequent chapters.

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