Cost Control and Its Effect in the Manufacturing Industries (a Case Study of Chisco Bakery Industries Enugu)
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Abstract on Cost Control and Its Effect in the Manufacturing Industries (a Case Study of Chisco Bakery Industries Enugu)
Maximization of profit is the pursuit of every business organization profit itself is the excess of revenue over expenditure. To obtain profit, increase in selling price of the product or reduction in the cost of production is inevitable. Since excessive price increase is dreaded by the public, it becomes necessary to achieve the business objective through controlling the cost production each product.
This project was therefore undertaken to give actual background on cost control measure, the heed for the control, cost items to be controlled and effect of uncontrolled cost of production on the organization, using Chisco Bakery industry Enugu as a case study.
According to the study, uncontrolled cost could lead to higher operating costs, lower profit marginal and dissatisfaction to the chairman of the company.
Using questionnaire methods it was found that cost could be controlled in different manufacturing areas such as material, labour and overheads. Also discussed was the major finding that the company had not been able to produce to its installed capacity, it employed a system of remuneration that guarantied a fixed salary and its production.
More ever, The use of standard costing has been advocated because, it will avail the company the opportunity of comparing actual cost with standard in order to check unnecessary various and also to make for easier interpretation of management reports.
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