Cost Accounting and Performance Evaluation in Manufacturing Companies

Abstract

The main objective of the study was to examine cost accounting as a panacea for performance evaluation in manufacturing companies. The data used in the study was obtained from primary sources. The collection of primary data was done through the administration of questionnaire on respondents who are staff of Nigerian breweries plc Enugu.A questionnaire was designed and administered to One hundred and nine (109) respondents from a population of Two hundred (200) in which the completed ones were returned and used in the completion of this study. Taro Yamane’s formula was used in determining the sample size. The data collected were analyzed with the use of Statistical Package for Social Sciences (SPSS). Results showed that there is significant relationship between direct material and performance of manufacturing companies, there is significant relationship between direct labour and performance of manufacturing companies,overhead cost has significant effect on the performance of manufacturing companies and Cost accounting has significant effect on the performance of manufacturing companies in Nigeria. Consequently, the study concluded that cost accounting is a very efficient and effective panacea for performance evaluation in manufacturing companies. However, to prepare a good and workable costing technique, establishments must know its goals and objectives, as well as where it is heading to. Nevertheless, cost accounting control is a managerial tool and not a substitute for management