Our Archives

Call 08068929770 or 08122972656 for any enquiries.

Project Topic:

COST ACCOUNTING INFORMATION IN MANAGEMENT DECISION MAKING (A CASE STUDY OF NIGERIAN NATIONAL PETROLEUM CORPORATION - NNPC BENIN CITY)

Project Information:

 Format: MS WORD ::   Chapters: 1-5 ::   Pages: 67 ::   Attributes: Data Analysis, table of content, abstract, references
::   226 people found this useful

Project Body:

ABSTRACT

This project research work attempts to explain the Cost Accounting Information as an aid to decision making in an organization using Nigerian National Petroleum Corporation (NNPC), Benin-Asaba Road, Benin City as a case study. Cost Accounting Information is designed for managers, since managers are taking decisions based on the existing cost accounting information. The important principle is that the Cost Accounting Information must be relevant for decision making. However, Generating Cost Accounting Information in an organization is not an easy task. The process of cost accounting itself is so complex. This is why cost accounting system is applicable only to a large-sized business. This is why the researcher made use of Nigerian National Petroleum Corporation (NNPC) as a case study. Chapter one of this project research work focuses on Background of the Study, Statement of the Problems, Objective of the Study, Significance of the Study, Limitation of the Study, Scope of the Study and Definition of Terms. Chapter two is on Literature review on Cost Accounting Information and such questions as what is Accounting, who is an Accountant? What is Cost Accounting?  Scope of cost accountancy, Nature of cost accounting, Relationship between Financial accounting and Cost accounting, Purposes or Objects of cost accounts, Functions of cost accountant, Advantages of cost accounting, Cost Accounting Information, the benefits of cost accounting information, managerial cost accounting etc. Chapter three deals generally on Research Methodology, Chapter four purely deals on data analysis and interpretation with the findings. While Chapter five focuses on Summary of Finding, Conclusion and Recommendation.

 

 

 

TABLE OF CONTENT

Content                                                                                        Page

Title Page                                                                                         ii

Approval Page                                                                                 iii

Dedication                                                                                        iv

Acknowledgement                                                                          v

Abstract                                                                                           vi

Table of content                                                                               vii

CHAPTER ONE

1.0      Background of the study                                                       1

1.1            Profile of Nigerian National Petroleum Corporation (NNPC) 2

1.2            NNPC organizational structure                                                          3

1.3            Statement of the problem                                                                  3

1.4            Research question                                                                 6

1.5            Research hypothesis                                                                7

1.6            Significance of the study                                                                   7

1.7            Scope of the study                                                                            8

1.8            Limitation of the study                                                            8

1.9            Definition of terms                                                                            9

CHAPTER TWO

LITERATURE REVIEW

2.0 What is accounting?                                                                    11

2.1 Who is an accountant?                                                                11

2.2 What is cost accounting?                                                             12

2.3 Other definition of cost accountancy                                           14

2.4 Scope of cost accountancy                                                                    15

2.5 The nature of cost accounting                                                     19

2.6     Relationship between financial accounting and cost accounting      21

2.7 Purposes or objectives of cost accounts                                               22

2.8 Functions of cost accountant                                                      25

2.9 Advantages of cost accounting                                                    27

2.10 Cost accounting information                                                     30

2.11 The benefits of Cost Accounting Information                                     31

2.12 What is managerial cost accounting (MCA)?                                      33

2.13 Managerial cost accounting definition                                                33

2.14 The benefits of improved MCA information                                       34

2.15   The role of accountant in ensuring decision making                            35

2.16   Ways in which Cost Accounting Information affect 
          negatively the decision of managers in the business 
          environment                                                                             40

2.17   The problems accountant face in generating        cost accounting
          information                                                                              41

2.19   Relating the remedies to the objective of the        study                              46

CHAPTER THREE

RESEARCH METHODOLOGY

3.0 Methodology                                                                               48

3.1 Area of the study                                                                        48

3.2 Population of the study                                                               49

3.3 Sample size and sample techniques                                            49

3.4 Method of data collection                                                           49

3.5 Method of data analysis                                                              51

CHAPTER FOUR

4.0 DATA PRESENTATION AND ANALYSIS                          53

4.1 Presentation of data                                                                   53

4.2 Research questions                                                                     54

4.3 Test of hypothesis                                                                      64

4.4 Discussion of findings                                                                   70

CHAPTER FIVE
5.0 Summary, conclusion and recommendation                          71
5.1 Statement of the problem                                                           71
5.2 Summary of finding                                                                    72
5.3 Conclusion                                                                                  73
5.4 Recommendation                                                                        75
5.5 Suggestion for further study                                                       76
References                                                                                        77
Appendix 1                                                                                      79
Appendix 2                                                                                      80

 

 

 

 

CHAPTER ONE

INTRODUCTION

1.0 BACKGROUND OF THE STUDY

Cost Accounting Information helps Management in making suitable decisions such as to make or buy, replace manual labour by machines, shut down or continue operations based on cost reports. (Vishnani, Shah 2008).

In the modern business world, the nature and functioning of business Organizations have become very complicated. They have to serve the needs of variety of parties who are interested in the functioning of the business. These parties constitute the Owners, Creditors, Employees, Government agencies, Tax authorities, Prospective Investors, and last but not the least the Management of the business. The business has to serve the needs of this different category of people by way of supplying various information from time to time. In order to satisfy the needs of these group of people a sound Organization of accounting system is very essential.

In the ancient days the information required by those who were interested in the business Organization was met by practicing a system of accounting known as financial accounting system. Financial accounting is mainly concerned with preparation of two important statements, viz., income statement (or profit & loss account) and positional statement (or Balance Sheet). This information served the needs of all those who are not directly associated with Management of business. Thus financial accounts are concerned with external reporting as it provides information to external authorities. But Management of every business Organization is interested to know much more than the usual information supplied to outsiders.

In order to carry out its functions of planning, decision-making and control, it requires additional cost data. The financial accounts to some extent fail to provide required cost data to Management and hence a new system of accounting which could provide internal report to Management was conceived.

Accounting plays a significant role within the concept of generating and communicating wealth of the companies.

Cost Accounting Information is designed for managers. Since managers takes decisions for their own Organization, there is no need for the information to be comparable to similar information from other Organizations. Instead, the important criterion is that the information must be relevant for decisions that managers operating in a particular environment of business including strategy make.

 

 1.1    PROFILE OF NIGERIAN NATIONAL PETROLEUM     CORPORATION (NNPC)

The Nigerian National Petroleum Corporation (NNPC) is the oil corporation through which the Federal Government of Nigeria regulates and participates in the country's petroleum industry.

NNPC was established on April 1, 1977 as a merger of the Nigerian National Oil Corporation and the Federal Ministry of Mines and Steel. NNPC by law manages the joint venture between the Nigerian Federal Government and a number of foreign multinational corporations, which include Royal Dutch Shell, Agip, ExxonMobil, Chevron, and Texaco. Through collaboration with these companies, the Nigerian government conducts petroleum exploration and production.

The NNPC Towers in Abuja is the Headquarters of NNPC. Consisting of four identical towers, the complex is located on Herbert Macaulay Way, Central Business District Abuja. NNPC also has zonal offices in Lagos, Kaduna, Port Harcourt and Warri. It has an international office located in London, United Kingdom. (The Economist Newspaper Limited, 2007-09-29).

1.2 NNPC ORGANIZATIONAL STRUCTURE

The Group Managing Director of the NNPC is Dr. Mohammed Sanusi Barkindo.

The NNPC Group is a very big and complex Organization which comprises of the NNPC Board, the Group Managing Director's office. The NNPC Group is divided into eight major arms called directorates which are headed by a Group Executive Director (GED) whom are a step below the Group Managing Director (GMD). The Directorates are also Sub-Divided into Several Divisions and Subsidiaries which are headed by Group General Managers (GGM) and Managing Directors (MD), respectively. The NNPC has two partly owned subsidiaries and 16 associated companies.

1.3 STATEMENT OF THE PROBLEM

The major problem that prompts the researcher to embark on this project is that, most Organizations in Nigeria under estimate the potentials and the relevance of Cost Accounting Information as regards to decision making in their Organizations. Some Organizations think Cost Accounting process is too complex, as its system involves number of steps in ascertaining cost such as collection and classification of expenses, allocation and apportionment of expenses. These Organizations considered it to be complicated system of accounts.  The researcher therefore decided to research on the topic so that:

1.     To establish that there is a relationship between Cost Accounting Information and decision making.

2.     The Cost Accounting Information require to make decision should be adequate and accurate.

3.     The Business owner that require maximum return on their investment will be satisfied because of the gain in understanding Cost Accounting Information in decision making

1.4 OBJECTIVES OF THE STUDY

The objective of this study is:

1.     To examine the relevance of Cost Accounting Information on Management decisions making. The researcher decided to establish this using NNPC as a case study for proper understanding.

2.     To assess the relevance and functions of Cost Accounting Information.

3.     To explain how Cost Accounting Information has helped in most Organizations in decision making process.

4.     Also, to examine how Cost Accounting Information is relevant to the Management, the creditor, the employees, the investors and the government.

1.5  RESEARCH QUESTION

The researcher postulates some questions to test whether there is a significant relationship between the variables in the research topic, they are:

1.     Is there any significant relationship between Cost Accounting Information and decision making process in Organizations?

2.     Does the decision of the manager as well as the Management depend on the available Cost Accounting Information? 

3.     Are the available Cost Accounting Information in NNPC so reliable in such a way that Management have confidence in it why making decisions?

4.     Will Management find it difficult to make proper decisions without confidence in Cost Accounting Information in an Organization?

5.     Is it true that some managers in Organizations still do not fully know the relevance of Cost Accounting in decision making process?

6.     Will creating awareness on the relevance of Cost Accounting Information to decision making enhance decision making in any Organization?

1.6 RESEARCH HYPOTHESIS

Based on the foregoing, the following research hypotheses formulated will be empirically tested and result gotten will serve as a spring board for recommendations. There is however no relationship existing between the Null hypothesis and the Alternative hypothesis. These are as follows:

Ho: There is no significant relationship between Cost Accounting Information and decision making process in Organizations

Hi: There are significant relationships between Cost Accounting Information     and decision making process in Organizations

Ho: The decision of the managers as well as the Management does not depend on the available Cost Accounting Information.

Hi: The decision of the managers as well as the Management in an Organization depends on the available Cost Accounting Information.
1.7 SIGNIFICANCE OF THE STUDY

The researcher now discovered that it will be reasonable to encourage Management in Organizations to introduce a proper and vital Cost Accounting Information generating system because Cost Accounting Information helps Management in making suitable decisions such as to make or buy, replace manual labour by machines, shut down or continue operations based on cost reports. Without confidence in Cost Accounting Information as a whole, the Management will encounter difficulties in decision making process. Therefore, this research work will be useful to Management in Organizations as regards improving on standard of Cost Accounting Information in the Organization in which they operate.

Also, this research work will be useful to accounting students as well as other Management students as it will give students the basic insight of Cost Accounting procedures as well as Cost Accounting Information as an aid for decision making in an Organization.

1.8 SCOPE OF THE STUDY

This research project basically covers such area as Cost Accounting, Cost Accounting Information, the functions of Cost Accounting, the relevance of Cost Accounting Information etc, its relevance to the Management in Organizations in the area of business, cost, pricing and investment decision making. The area covered in the research work is limited to Nigerian National Petroleum Corporation (NNPC), Benin–Asaba Road Deport, Benin City.

 

 

1.9 LIMITATION OF THE STUDY

During the conduct of this research work, some factors posed as constraints to the determined efforts of the research to carryout the research study to such a depth and in such a manner that it ought to have been carried out judging from its relevance to Management, such factors include:

a.     Management Restriction: Management more often than now allow access to information that are considered very confidential in nature like detail information of the Organizational corporate profile. As a result of the restrictions the researcher was able to work with only the information that was accessible.

b.     Time Constraint: Time is also another factor that acts as hindrances in carrying out this research study. This is as a result of the fact that other things were still being attended to in the course of carrying out this research work.

c.      Financial Constraint: Money also acts as a problem in the conduct of the research work. Traveling expenses were incurred in getting the materials for the research work. Also incurred, were expenses for the typing and distribution, building and a lot of other expenses.

1.10 DEFINITION OF TERMS

Cost Accounting

A type of accounting process that aims to capture a company's costs of production by assessing the input costs of each step of production as well as fixed costs such as depreciation of capital equipment.

Accounting Information System - An accounting information system (AIS) is a system of collection, storage and processing of financial and accounting data that is used by decision makers.

Ethnics – Rules, principles or order governing a profession.

Leader – Person in authority (Head of an Organization).

Management – The art of running and controlling a business or similar Organization. According to Fubara (1986) views Management as an activity carried on in an environment that comprise of resources in capital and human, having alternative uses.

Dishonesty – Lack of trust and intending to deceive people.

 

Measure – Steps, methods to control situation.

Project Department:

MORE ACCOUNTING FREE UNDERGRADUATE PROJECT TOPICS AND RESEARCH MATERIALS


Get The Complete Project »

Instantly Share this Project On Social Media:

CLOSELY RELATED ACCOUNTING FREE UNDERGRADUATE PROJECT TOPICS AND RESEARCH MATERIALS

AN APPRAISAL OF THE IMPLICATION OF ELECTRONIC BANKING IN NIGERIA BANKS (A CASE STUDY OF ACCESS BANK)

 Format: MS WORD ::   Chapters: 1-5 ::   Pages: 67 ::   Attributes: Secondary data, Data Analysis,Abstract  ::   629 engagements

CHAPTER TWO REVIEW OF RELATED LITERATURE Electronic banking in Nigeria has overtime been viewed by many especially economists as having a lot of implications on the economy of Nigeria and especially...Continue reading »

A CRITICAL ANALYSIS OF THE USE OF FINANCIAL STATEMENTS IN ASSESSING THE PERFORMANCE OF AN ORGANIZATION (A CASE STUDY OF FIRST BANK NIGERIA)

 Format: MS WORD ::   Chapters: 1-5 ::   Pages: 75 ::   Attributes: Questionnaire, Data Analysis, Abstract  ::   452 engagements

ABSTRACT The study was carried out to analyse how an organization performs making use of the financial statements with First Bank of Nigeria Plc serving as the case study. the study disclosed that th...Continue reading »

AN EVALUATION OF THE PERFORMANCE OF NIGERIAN STOCK EXCHANGE IN THE ECONOMIC DEVELOPMENT OF NIGERIA ( A CASE STUDY OF NIGERIAN STOCK EXCHANGE)

 Format: MS WORD ::   Chapters: 1-5 ::   Pages: 78 ::   Attributes: Questionnaire, Data Analysis,Abstract  ::   299 engagements

HISTORICAL BACKGROUND OF THE NIGERIA STOCK EXCHANGE IN THE ECONOMIC DEVELOPMENT OF NIGERIAN. The nigeria stock excahnge denoted by NSE is a government establishment where stocks are traded on a daill...Continue reading »

APPLICATION OF BUDGETS AND BUDGETARY CONTROL MEASURES IN A NON-PROFIT ORGANIZATION: A CASE STUDY OF APOSTOLIC CHURCH, DELTA

 Format: MS WORD ::   Chapters: 1-5 ::   Pages: 76 ::   Attributes: Questionnaire, Data Analysis,Abstract  ::   310 engagements

2.1 CONCEPTUAL FRAMEWORK A budget is can be defined by accountants as “a planned outcome to be generated and for the expenditure to ensure during that period and the capital to be employed to a...Continue reading »

ASSESSING BOOK-KEEPING PRACTICES OF SMALL AND MEDIUM SCALE ENTERPRISES IN CALABAR LOCAL GOVERNMENT AREA

 Format: MS WORD ::   Chapters: 1-5 ::   Pages: 69 ::   Attributes: Questionnaire, Data Analysis,Abstract  ::   293 engagements

ABSTRACT The economy of Nigeria cannot function properly or thrive without the micro, small and medium scale enterprises (SMEs). These small scale enterprises cannot function properly if they are not ...Continue reading »

ASSESSMENT OF ADEQUATE RISK RECOGNITION AND MANAGEMENT IN NIGERIAN INSURANCE COMPANIES (A CASE STUDY OF UNION ASSURANCE COMPANY, UYO)

 Format: MS WORD ::   Chapters: 1-5 ::   Pages: 86 ::   Attributes: Questionnaire, Data Analysis  ::   260 engagements

THE CONCEPT OF RISK Risk has been the subject of study by different scholars over the years with several meaning and definitions. But the most accepted definitions are that of J.E Banister and P.A Baw...Continue reading »

What are you looking for today?

TESTIMONIALS:

  • 1. Rita Eze from abia state university said "thank you so much for your sincerity; i will tell my friends about you guys.".
    Rating: Very Good
  • 2. JULIET from UNIMAID said "I THANK YOU GUYS FOR BEING HONEST.....I WILL TELL MY FRIENDS ABOUT YOU GUYS. THANKX SO MUCH".
    Rating: Excellent
  • 3. Lilian Terdoo from BSU said "i have nothing to say but thanx for being honest. i appreciate u guys...".
    Rating: Very Good
  • 4. Demien Johnson from UNN said "Uniprojectmaterials is a blessing to researchers. my job was eased up by you guys. your jobs have good quality and was delivered on time to me. Thanks a million times".
    Rating: Very Good
  • 5. Patience from unilag said "i was having difficulties handling my dissertation of 12000 words. until i stumbled on uniprojectmaterials, my work was ready in three days with high quality write up and excellent data analysis, i will tell all my friends about u guys. Mr Donald is a very nice person, he should be in charge of the phone. he attended to me very well. God bless. ".
    Rating: Excellent
  • 6. James Ike from College of Education, Gindiri said "Great delivery. Una dey try wella!!!".
    Rating: Excellent

Paper Information

Format:ms word
Chapter:1-5
Pages:67
Attribute:Data Analysis, table of content, abstract, references
Price:₦3,000
Get The Complete Project »

Best Selling Projects

Our Archives