The Impact Of Cost Control On Manufacturing Companies In Nigeria (A Case Study Of Coca-Cola Bottling Company, Ilorin)

Project and Seminar Material for Accountancy / Accounting

The Impact Of Cost Control On Manufacturing Companies In Nigeria (A Case Study Of Coca-Cola Bottling Company, Ilorin)

Table of Content

  • Title Page
  • Certification
  • Dedication
  • Acknowledgement
  • Table of contents

Chapter One:


  • 1.1 Introduction
  • 1.2 Statement of the problem
  • 1.3 Objective of the study
  • 1.4 Significance of the study
  • 1.5 Research Question
  • 1.6 Scope of the study
  • 1.7 Limitation of the study
  • 1.8 Plan of the study
  • 1.9 Definition of terms

Chapter Two:

Literature Review

  • 2.1 Review of related literature
  • 2.2 Theoretical framework cost control method
  • 2.3 Review of related reports
  • 2.4 Appraisal of literature review

Chapter Three:

Research Methodology

  • 3.1 Research Hypothesis
  • 3.2 Data Specification
  • 3.3 Method of data collection
  • 3.4 Population and sample size
  • 3.5 Sampling techniques
  • 3.6 Method of data analysis

Chapter Four:

Data Presentation and Analysis

  • 4.1 Research methodology
  • 4.2 Discussion of the analysis
  • 4.3 Hypothesis testing
  • 4.4 Discussion of findings

Chapter Five:

Summary, Conclusion and Recommendation

  • 5.1 Summary
  • 5.2 Conclusion
  • 5.3 Recommendations
  • Reference

Chapter One


1.1 Introduction

Nigeria Bottling Company was as a private company with authorized share capital of N200,000 divided into 400,000 ordinary share of 50k each.

The entire share holding was owned by foreign shareholders notably late Anachosias George Leventis and connotative P. Leventis. The company was established for the purpose of manufacturing marking accredited table water, such as coca-cola, Fanta and sprite in Nigeria under a franchise agreement with coca-cola international through changing of distribution outlet over the country.

However over past six decade the company has diversified tremendously into the vita areas through subsidiaries and associates. About eleven years age, Nigeria Bottling Company Plc acquired at Ikeja, the Lagos Bottling facilities and other assets of Nigeria Soft drinks company bottlers of schoppes range of product.

The main purpose was to eliminate competition in the area of bitter lemon product around that time, the company took over the assets of Nigeria soft drinks and other sapanda industry limited, Aba, Imo State in the South. All were done to associate the company base and strength its competitive position.

The maize product company operates the following agro-industry ventures which are integrated with the company farming activities.

  1. Maize milling and maize grinds plant
  2. Rice milling and par-boiling
  3. Oil extract and refining

The company bottling activities are now carried out in 20 plants in various parts of the federation.

1.2 Statement of the Research Problem

This study intends to find out cost control in manufacturing industry and how coca-cola bottling company is financed under the control, the study will examine the following:

  1. The expensiveness of cost control in the coca-cola bottling company plc.
  2. How cost control affect the co-ordination data
  3. How cost control affect the capital expenditure of the company
  4. The way which cost control affect militate against current expenditure in financing the company
  5. The implementation of cost control in the enrolment of members of staff in the company

1.3 Objective of the Study

The main purpose of the study is to make official review and analytical demonstration of cost control problem in a manufacturing cost system defer from one industry to another.

In purpose of these objectives, we have to:

  1. Identify the cost control system and used in Nigeria bottling company Plc.
  2. Determine the importance of cost control in Nigeria Bottling Company Plc.
  3. More detailed explanation of the methodology involve in the handing of cost with particular emphasis on Nigeria Bottling Company Plc
  4. Assess the effectiveness of cost control in our case study (costs and budget)
  5. Determine the unit cost of production.

The purpose of this project work is to discuss the means and method of cost control with special references to Nigeria Bottling Company Plc.

1.4 Significance of the Study

The study is concern with the relationship between the control in a bottle manufacturing company as case study of coca-cola bottling Ilorin and also member of the public as a whole. In that, the researcher will be able to assess the public as a whole and specifically by coca-cola Bottling Company Plc in the economic development in Nigeria.
Such assessment with through light in the benefit derivation by Nigeria men and women from the activities proceeded by coca-cola bottling company in Nigeria.

1.5 Research Questions

The research process will answer the following question:

  1. Which is the best pricing policy for a product of the coca-cola Bottling companies?
  2. To what extent does impact of cost control affect the manufacturing industry?
  3. To what extent does proper cost control affect manufacturing industry?
  4. How effective do manufacturing industries implement cost control in their activities?

1.6 Scope of the Study

Among the primary responsibility of management is setting up and implementing of control in the industries the project work examine critically the impact of cost control system and two factor management used it also the classification of cost reduction and standard costing.

1.7 Limitation of the Study

This research work is restricted to the Accountant Department and parts of Administration Department of the company, due to the financial problem and limitation of time and distance factor. However, this research work make useful information gather to light more into importance of good cost control in the manufacturing industry.

1.8 Study Plan

The research work is divided into five chapter:

  • The chapter one contain: background of the study, statement of the research problem, objective of the study, significance of the study, research problem, scope of the study, limitation of the study, study plan and definition of terms.
  • Chapter two contain: literature review used this is where theatrical framework is used and appraisal of literature review and related report.
  • Chapter three, will look into the historical background of the study and various research method used to get data needed for his work.
  • Chapter four contains data needed for his work analysis and discussion of findings.
  • Chapter five, which is the last chapter in written summary, conclusion, recommendation and bibliography.

1.9 Definition of Terms


These are the people in charge of the business. (Managing the business).


This is the careful arrangement of activities to be carried out by an organization.


This can be defined as the plan for income and expenditure.


This can defined as the organization system or group of people.

Cost of Control:

Cost can be defined as the minimization optimization of base on established target and as well as taking corrective action, if there is slight deviation from targets.

Chapter Five

5.0 Summary, Conclusion and Recommendation

5.1 Summary

This research work concerned mainly with the method adopted by the manufacturing industry in cost control and how it affect Nigeria bottling company plc.

It is discovered that cost control is already integrated into the financial system of Nigeria Bottling Plc since the type of cost control used by the organization is standard costing system. It is necessary that information obtained from the accounts section is useful for this research work.

In addition it is discovered that the management choose standard costing system because it is mostly considered appropriate for their production system and it is easy to predetermined estimated cost per unit, therefore the chapter one of the research work has make more useful information need for this research and how important the control in the manufacturing industry.

More so, the chapter two has look into various authors ideals toward the topic and benefit of the cost control in this work.

The chapter three focuses on various researches applied to this work.

Chapter four try to work on data presentation analysis and hypothesis testing. The last chapter which is chapter centre on summary, conclusion and recommendation.

5.2 Conclusion

This study was carried out to investigate the impact of cost control in the manufacturing industries, its effect on the effectiveness in the management of Nigeria Bottling Company Limited. It was found that improper maintenance of calculating machine majority cause errors and delay in the preparation of cost control record.

The accounting department plays a vital role in Nigeria bottling company Limited. The major function of the cost control accounting system in the management of an organization is to aid the preparation of accurate and standard final account. It is also in order to know the accurate value of stock. Finished goods, raw materials and work in progress. It is also provide management with facts and figures to enable them make objective decision based on this information. The skills supervisor plays a very active role in the company and works effectively by applying super techniques, the skill and competency, the processed. It was out that ambiguity in submission sends in by that department of recording purposes cause errors to statement of account. Therefore, the Accountancy departments of account make sure that classification of accounts is clear and relevant in the companies contest. The plan accounts are monitors of the performance of the company activities and management. He also help in planning by him for use by management. He also help in planning and for costing the future result of the company activities.

Moreover, the incentive and other amenities are provided to the staff and this makes them operate effectively for instance, first aid and rest room are very important, therefore these rooms are well equipped cold and impersonal. Also there are adequate ventilation and constant flow of clean fresh air through the office in order to combat fatigue may many officers are an conditioned with air flow temperature and humidity which are automatically controlled.
The researcher also administered questionnaire on the staffs concerned, specially they are accounts departments staff. The questionnaire were designed in such a way to find out about the management and accounting system in Nigeria bottling company Limited survive likely problem that is confronting them in cost control practice.

5.3 Recommendation

From logical and critical analysis of the questionnaire. Which is based on the hypothesis, the researcher is putting forward the following as useful recommendation for better cost control limited toward cost control practice.
It is most important that the calculating machine and other equipment used must be properly maintained. Whenever the light is cut off from POWER HOLDING or Company plant, it is advisable to switch off the machine uses from normal place if not sometime the high voltage from restoring light may cause vigorous damage to the machine and if the machine spoilt, the company can afford immediate arrangement for the replace or repairs.
The supervisors should make sure that order and instruction given to their subordinate are very clear, concise and relevant to the tasks being undertaken. The managers and supervisors must seek to like employers in their work and to give them tasks in which they can be provide of so that individual worker will become more interest in their work and this increase their moral.

Furthermore, it is the responsibilities of the accounting department to make sure that classification of accounts are clear, correct and relevant to the company’s business content. The staff should avoid error caused by ambiguity in submission sent by other department for recording purpose. Therefore, they need to check the accounts with an adding machine as much as possible before. Final recording is done. Plant accountant should be able to monitor and present the information obtained by him for use by management not only that he is also expected to help management in planning and forecasting future results of the company activities.

Nevertheless, the incentives and other amenities for staff are very important and a principle record for work done is an adequate salary coupled with fair condition of employment.

Finally, adequate payment and good condition such as payment of transport allowance, pension pay to workers are not paid sufficiently enough to provide for the satisfaction that people require at work if they are to offer their best management of the company needs to concern themselves with the problem of stimulating the interest of its workers in their work in order to obtain increase output and higher standard of quality every effort should be made to develop a community interest between individual and others with whom to work.

In short, there conditions require that there should be a state and community accepted objectives known to every members of the group. The management is not merely to deal working condition affecting the individual but also to take on interest in the effective running of the business

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