Product costing systems in Nigerian companies

Abstract

The paper examined the factors influencing product costing systems in Nigerian manufacturing organizations.Following Al-Omiri and Drury (2007) framework where alternative proxy measures were used to identify the features of product costing systems, a questionnaire was used to gather data, while OLS regression technique was applied to evaluate how importance of cost information, product diversity, cost structure, intensity of competition, size of organization, and quality of information technology, affect the sophistication of cost system of manufacturing companies whose shares are quoted in the floor of the Nigerian Stock Exchange. Results indicate a positive relationship between cost system sophistication and all observedindependent variables. However, the relationships between cost system sophistication and cost structure, product diversity and quality of information technology are significant while the relationship between cost system sophistication and size, level of competition, and importance of cost information are not significant.