CHAPTER
ONE
1.1
INTRODUCTION.
The
bottling industry is presently undergoing a revolution worldwide due to the twin
impacts of deregulation and technological break through most company in Nigeria
are quite relatively operating on differentiated cartel because of the trend
and competitive environment. Under such conditions costing and management
decision process strategy suddenly become more vital tools to booster services,
it should be noted that such concepts of “Standard costing” and” management”
all about? Standard costing is a technique which uses standard for costs and
revenues for the purpose of control through variances analysis.
Management
is an act that coordinates all group effort. It does not only concerned with
profit oriented enterprise but an act of every human Endeavour’s be it product
or service wise.
Managing
is essential in all company as well as in all levels of organization in
attainment of the group goals.
The
coca-cola Bottling Company of Nigeria Plc can be traced briefly with that of
united state of American which came in to being in Nigeria in the year 1953.
When Nigeria bottling company set up it first plan in Lagos Precisely at
Oyingbo but later move to Apapa, it has an additional development to the
existing companies in the area, a contributed immersively to the socio-
economic group of the country.
John
Pembetion was the investor of coca-cola in May 1883 being a book keeper, he
designs the following script that distinguishes the advertising and marketing
activities, Robinson also had excellent pen man ship. It was he who first
script “coca-cola in the following letters which has come the famous logo
today. The soft drink was first sold to the public of the soda fountain in
Jacobs pharmacy in Atlanta.
In
1887 another pharmacist, a business man bought the formula for coca-cola from
the investor and was one of the America. Most popular fountain drinks how at
the helm the coca-cola company increased syrup sales by 4000% between 1890 and
1900. In April 23, 1985 the trade secret “new coke” formular was released, today
products of coca-cola company are consumed at the rate of more than one billion
drinks per day.
The
success of coca-cola bottling company of Nigeria place gave birth to opening of
some branches like port-harcourt, kano, Ibadan, Enugu, benin and Ilorin which
is used as the case study. This success also brought the development of some
sister industries like delta Glass company which supplies million of bottles
required to keep a large bottle company in operation. Also it help in the
receding of broken bottles in ijebu ode and kano state which manufactures as
the berum plastic company that makes the plastic creates for carrying bottles.
The
coca-cola Nigeria bottling company produce drinks such as coke, crest, bitter lemon,
Schweppes fanta. Soda water and eva table water. The Nigeria coca-cola bottling
company of Ilorin unity plant is sited along coca-cola at unity bus stop Ilorin
kwara state. The commission of that plant was in 1944 while production actually
stated in 1995.
1.2
STATEMENT
OF THE RESEARCH PROBLEM.
The
statements of the research problems facing standard costing as a tool for
effective management decision making include the following;
i.
What
do you understand by the word statement costing?
ii.
Do
you know the type and element of standard?
iii.
What
relationship do standard costing and budgeting have?
iv.
Is
there anything you know about management decision making?
v.
What
are the limitations of standard costing?
vi.
Is
there anything called variance in standard costing?
1.3
OBJECTIVES
OF THE STUDY
The success of business
ventures depend largely on a well defined and clearly stated management
decision making because a sense of directions and focus as well spelt out. The
aim and objectives of this study are:
i.
To
highlight the concept of standard costing.
ii.
To
enumerate the type and element of standard cost
iii.
To
show the extend of standard costing in budgeting
iv.
To
know the relationship between standard costing and variance analysis as a tool
for management of standard costing.
1.4
JUSTIFICATION
OF THE STUDY.
The
research work is undertaken in an attempt to identify the major contribution of
standard costing as an aid to management decision making. The findings and
suggestions of the write up will attempt to find a lasting solution to problems
facing industries and those who are already engaged in business. It will
hopefully go a long way in enabling industries to improve in their effort
toward making Nigeria an industrialized area and development economics
management of the country.
1.5
SCOPE
OF THE STUDY
Most people don’t know the benefit
accruing from the activities of companies which may be due to ignorance as to
what services are afford by management. It does appeal to us to carry the
coronaries through reasonable recommendations that will improve on the
performance of companies. Therefore the purpose of this research work shall
restrict the study to the concept of standard costing. Importance and
limitation of managerial decision
1.6
LIMITATION
OF THE STUDY.
There
are always two sides of a coin: the head and the tail. Therefore there is no
undertaking without a set back. In the case if this research work, the
researcher encountered some problems, the critical problem encountered which
may infringe the successful conduct of this research work of his magnitude
demand much time and effort on the part of the subject matter of the study in
order to come up with a viable and acceptable exposition.
Another problem has to do with the non-challant
attitude of the people towards the questionnaire distributed. The attitude in
their port could be helping matters despite the promise by the researcher that
the information provides will surely be
used for academics purpose and not for other things, this much information
provided could be obtained.
1.7
DEFINITION
OF RELATED TERMS
It
ensures that the readers understand the different terms in the work.
a. Company – a legal entity.
b. Capital – money used to start business.
c. Production process of utilization into
goods and services.
d. Prospects: – wealth.
e. Cost : Estimated amount
f. Standard : measure management : set of
body that piay for the company.
1.8
PLAN
OF THE STUDY.
The
study is divided into five chapters. Chapter one which consist of the
introduction, background of the study, statement of the researcher problem aim
and objectives of the study, Justification of the study, scope of the study,
limitation, definition or related terms and plans of the study.
Chapter
two contain literature review, management pyramid elements standard and costing
sheet, variances analysis, importance and limitation of standard costing,
costing techniques cost centre and unit, method of costing and significance of
costing to managerial personnel
Chapter
three, discount the research methodology, source of data, sample method, size
and questionnaire design.
Chapter
four expatiated more on data presentation analysis and findings of research
while chapter five talks about the summary, conclusion and recommendations.