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PRODUCTION COST CONTROL IN MANUFACTURING ORGANISATION

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CHAPTER ONE

INTRODUCTION

1.1     BACKGROUND OF 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.

1.3    PURPOSE/OBJECTIVE OF THE STUDY    

Some of the objectives of this research work is

i. To assess the various production cost control techniques and effectiveness as well s the efficiency.

ii. To know some of importance and need for cost control.

iii.To know cost control and reduction Technique in manufacturing originations.

Iv  To know the use of budgetary control system manufacturing organization.

V  To know the use of budgetary control system in cost control

1.4   SIGNIFICANCE OF THE STUDY

This research work as carried out by the research on production cost control in manufacturing organization will be of great important to so many manufacturing firms in the area of cost control in order to maximize profit.  Also individuals who are interested in entering into the business manufacturing will equal benefit from this project.

1.5   LIMITATION OF THE STUDY

The following limitations were faced by the researcher and limit efforts in elaborating the researcher work.

Finance:  The researcher is a student with no souce of income and has been discouraged from traveling to all the labour market in Nigeria to collect dta for this study.  She ahs therefore chosen Enugu metropolis because of proximity and ease of contract to the workers.

Time:   This project work has just one semester time limit.  It would have been desirable for a longer time to complete the topic and extend the coverage but it was not possible.

Pressure from Academic Work:  The student was jam-packed with other academic activities and at the same time writing this research work and this brought little difficult in finishing this research work on time.

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