Effectiveness of Standard Costing as a Control Tool for Performance Evaluation in Manufacturing Industries

Effectiveness of Standard Costing as a Control Tool for Performance Evaluation in Manufacturing Industries

Effectiveness of Standard Costing as a Control Tool for Performance Evaluation in Manufacturing Industries

 

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Abstract on Effectiveness of Standard Costing as a Control Tool for Performance Evaluation in Manufacturing Industries

Basically the direction towards an efficient production of goods and services could be as a result of an effective control of cost of production. The study of standard costing as an aid in production cost control is very imperative especially in an economy with high rate of inflation and where prices of goods and services are constantly increasing with no hope of reduction with the effect that the real value of money in the consumers hand is lower than its face value. This being the case, the consumers only have little to spend, therefore what will be uppermost in their minds is to buy products of cheaper rate when compared with other products of the same quality. So this research looked into how effective stand costing is in the control of production cost and performance appraisal with reference to the Anambra motor manufacturing company (ANAMMCO) Enugu. It is the believe of the researcher that for the company to meet one of its goals of producing at a reduced cost but consistent quality for customers satisfaction. It has to establish measures to effectively monitor and control production cost. Standard, costing is one of the measures of achieving this. Conclusively, in order to achieve this purpose, background of study, statement of problem, objective of study, signification of study were show in chapter one of this project.

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