Our Archives

Call 08068929770 or 08122972656 for any enquiries.

Project Topic:

INVENTORY CONTROL AS AN EFFECTIVE TOOL FOR COST CONTROL IN AN ORGANISATION (A Case Study Of Cadbury Nigeria Plc)

Project Information:

 Format: MS WORD ::   Chapters: 1-5 ::   Pages: 115 ::   Attributes: Questionnaire, Data Analysis
::   218 people found this useful

Project Body:

ABSTRACT
The topic of this research work is inventory control as an effective tool for cost control in an organization using Cadbury Nigeria plc as a case study. Inventory control can be defined as the implementation of management’s inventory policies in a manner that assures that the goal of inventory management is met. The management of various companies is faced with the problem of at what level inventory should be held in order to have a healthy operation that is optimal stock level that will minimize the cost of stocks the (ordering and holding costs). The researcher objective is to know the effectiveness of inventory control on cost control. In this course of carrying this research work various techniques or methods of data collection were used. They include questionnaires, interviews and observations. A sample size of 73 workers in Cadbury Nigeria plc was also used and was chosen among the number of department/sections of worker using Bowley’s proportional allocation formula. The researcher makes use of three hypotheses in this study to analyze the research project. The researcher made used of Z-test in testing the formulated hypothesis. The researcher used the descriptive statistical tools (tables, figures and percentages) in the presenting and analyzing the data generated from this study. From the analysis, the researcher finds out that effective management of inventory will help a firm to control its cost and contribute to the actualization of a firm organizational goal. The researcher therefore recommends that organization should apply the technique of inventory control with the objective of cost control so as to enable the goal of profit maximization to be attained.

TABLE OF CONTENT
Approval Page 
Dedication 
Acknowledgement 
Abstract 
Table Of Content

CHAPTER ONE 
1.0 INTRODUCTION

1.1 Background Of The Study 
1.2 Statements Of The Problem 
1.3 Objectives Of The Study 
1.4 Research Questions 
1.5 Hypothesis Of The Study 
1.6 Significant Of The Study 
1.7 Scope And Limitation Of The Study 
1.8 Definition Of Terms 
Reference

CHAPTER TWO
2.0 REVIEW OF RELATED LITERATURE 

2.1 Inventory Management: Definition Of Concepts 
2.2 Problems Associated With Inventory Management 
2.3 Impacts Of Improper Management Of Inventory 
2.3.1 Ideas For Improvement 
2.3.2 Implementation And Execution 
2.4 Benefit Of Inventory Management And Control 
2.4.1 Process Of Inventory Management And Control 
2.4.2 Optimum Inventory Level 
2.4.3 Reasons For Holding Inventory 
2.5 Costs Associated With Inventories 
2.6 Inventory Cost Control Management 
2.7 Inventory Valuation Method 
2.8 Inventory Control Management And Its Application 
2.8.1Technique Of Inventory Control 
2.9 Historical Background Of Cadbury Nigeria Plc 
Reference

CHAPTER THREE
3.0 RESEARCH DESIGN AND METHODOLOGY

3.1 Research Design 
3.2 Sources Of Data 
3.3 Research Instrument 
3.4 Reliability/ Validity Of Research Instrument 
3.5 Population Of The Study 
3.6 Sample And Sampling Procedures 
3.7 Administration Of Research Instrument 
3.8 Method Of Data Analysis 
3.9 Decision Criterion For The Validation Of Hypothesis 
Reference

CHAPTER FOUR
4.0 DATA PRESENTATION AND ANALYSIS 

4.1 Data Presentation And Analysis 
4.2 Testing Of Hypotheses

CHAPTER FIVE
5.0 SUMMARY OF FINDINGS, CONCLUSION AND RECOMMENDATION

5.1 Summary Of Findings 
5.2 Conclusions 
5.3 Recommendations 
Bibliography 
Appendix

CHAPTER ONE

INTRODUCTION
1.1 BACKGROUND OF THE STUDY

In general, inventory control and cost control techniques have become a household name in the business of manufacturing firms, that boast of the possession of goods or stocks, that hope to sell when the demand arises. It is so important to them, such that their survival as a corporate entity, hinges on how they are able to coordinate and control their applications. Inventory is a term that has been explained in various ways by various scholars, inventories are stocks of the product a company is manufacturing for sale and components that makes up the product. They are raw-materials, work in progress and finished goods and they constitute various form of inventory in a manufacturing firm. Inventories are the stocks of material or finished goods which a company keeps in anticipation of demand or consumption.
In the past, inventory management was not seen to be necessary. In fact excess inventories were considered as indication of wealth. Management by then considered overstocking beneficial. But today firms have started to embrace effective inventory control. The goal of effective inventory control is to be sure that optimum levels of inventories are available that there are minimal stock
outs, (i.e running out of stock), and that inventory is maintained in a safe place and is always readily accessible to the proper personnel.
Consequently, there is a need for the firms to undertake effective inventory control with the aims of:
a) Ensuring a continuous supply of materials to facilitate
b) Maintaining sufficient stock of raw materials in periods of short supply and anticipated price changes
c) Minimizing the carrying cost and time virtually every company has one form of inventory or the other. The level of the forms of inventories of a firm depends on the nature of its business manufacturing.
The scope of inventory management concerns the fine lines between the replenishment lead time, carrying cost of inventory asset management, inventory forecasting, inventory valuation, inventory visibility, future inventory price forecasting, physical inventory, available physical space for inventory, quality management replenishment, returns and defective goods and demand forecasting. Balancing these competing requirements leads to optimal inventory levels, which is an on-going process as the business need shift and react to the wider environment.
Inventory management involves the monitoring of material moved into and out of stock room locations and the reconciling of inventory balance. Management
of inventories with the primary objective of determining/controlling stock levels within the physical distribution function to balance the need for product availability against the need for minimizing stock holding and handling cost. Policies relate to what levels of inventories are to be maintained and which vendors will be supplying the inventory. How and when inventories will be replenished, how inventory records are create, managed and analyzed and what aspect of inventory management will be out sourced are also importance component of proper inventory management.
On the other hand, cost control refers to steps taken by management to assure that all segments of the organization function in a manner consistent with its policies. For effective cost control, most organization use standard cost system, in which the actual cost are compared against standard cost for performance evaluation and deviations are investigated from remedial actions. Cost control is also concerned with feedback that might change any of all the future plans, the production method, or both. From the foregoing, it can be categorically asserted that how strategic a firm manages its stocks or inventories will defines its cost control techniques and budgets. It is therefore, the focus of this research study to carry out and assessment of inventory control as an effective tool for cost control in an organization, using the inventory and cost control techniques of Cadbury Nigeria plc as our case study.

1.2 STATEMENT OF PROBLEMS
In the last couple of decades, the numbers of products offered to the market have generally exploded. As the same time, the product life time has decreased drastically. The combination of the two trends leads to increase in accuracy of the demand forecasts, leading to firms facing an increase in demand uncertainty resulting in the increase in inventory levels. It is important that a company maintains adequate stocks of material for the continuous supply to the factory for an uninterrupted production, in doing so such a company is exposed to two undesirable points namely excessive carry cost and the risk liquidity, while inadequate inventory can lead to production hold-ups and failure to meet delivery commitments. The study is concerned with problem of how to determine and maintain optimum level of inventory investment.
It cannot be over-emphasized that inventory keeping is an indispensable activity in the activity of every business firms that deals in stocks. This is because these stocks, depending on how they are warehoused or better still managed, can make or mar them. It is not only just to keep record of these inventories; there is also the need for management to maintain the cost objectives put forward in the planning stage of inventory management. Evidence has also shown that a lot of firms have failed management control and thus, they have been made to count their losses. How then can the firms maintain adequate or proper inventory
control alongside with cost control? The answer to this question and many issues from the basis for the appraisal is this research study.

1.3 OBJECTIVES OF THE STUDY
 To know how effective inventory control is when it comes to controlling cost in an organization.
 To outline the relationship that exists between inventory control and the cost control system of an organization.
 To know how effective inventory control technique.

1.4 RESEARCH QUESTIONS
 How effective is inventory control when it has to do with an organization cost control practices?
 What are the essential relationship existing between inventory control and cost control?
 How can planned effective inventory control techniques contribute to the profitability in a firm?

1.5 HYPOTHESES OF THE STUDY
H0: Inventory control management is not an effective tool for cost control in an organization.
H1: inventory control management is an effective tool for cost control in an organization.
H0: There is no relationship existing between cost control and inventory control.
H1: There is relationship existing between cost control and inventory control.
H0: A well-planned and effective inventory control technique does not contribute to the profitability in a firm.
H1: A well-planned and effective inventory control technique contributes to the profitability in a firm.

1.6 SIGNIFICANCE OF THE STUDY
Prior to the eighteenth century, possessing inventory was considered a sign of wealth. Generally, the more inventories you had, the more prosperous you were. As at then, inventory existed in stores of wheat, herd of cattle and rooms full of pottery and other manufactured goods. While these inventories were been kept, their effective cost objective were also being defined at the same time, in order to allow the firm achieve its objectives.
Based on this, when this research study is completed, it will be beneficial to:
 The management of Cadbury Nigeria plc and other manufacturing firms in the country. It will essentially help to bring out how relevant inventory control and effective cost control are to their organizations if well manipulated. It also let them see how important it is to take stock and evaluate it correctly.
 Academic student: it will allow the student to have an insight of what the practice of inventory control is outside school environment. It will also provide them with information for their further study.

1.7 SCOPE AND LIMITATION OF THE STUDY
The research study will basically focus on Cadbury Nigeria plc, taking into cognizance its inventory control practices and technique or steps and try to bring out how relevant it can be to the organization’s activities. An attempt will also be made to assess the cost control technique of the company in order to see how they synergize with their inventory control practices.
The limitation that will likely be faced in the course of this project shall include; limited timing for the completion of the project, shortage of required finances for the work, non-cooperation on the part of some of the respondent will be given the questionnaire.

1.8 DEFINITION OF TERMS
The following are defined in the work
INVENTORIES: These are stock of materials or finished goods which a company keeps in anticipation of demand or consumption. They constitute a sizeable portion of the total assets of many firms.
INVENTORY MANAGEMENT: Is the process which integrates the flow of supplies into, through and out of an organization to achieve a level of service.
RAW MATERIAL: Inputs into the production process that will modify or transform into finished goods.
WORK IN PROGRESS: Semi finished products found at various stages in the production operation.
STOCK LEVEL- One of the most objective of a stock control system is to ensure that “stock-out” do not carry occur and that surplus stock are not carried.
STOCK OUTS: Occurs when there is insufficient stock to meet production demands and this can lead to loss of customer goodwill, reduced profit etc
MINIMUN STOCK LEVEL: The minimum stock level is below which stock should not be allowed to fall. If stock so below this level there is a danger of the stock out resulting in production stoppage.
MAXIMUM STOCK LEVEL: The maximum stock level above which stock should not be allowed to rise. It is desirable that the level should be as low as possible but of course it must all forecast usage of materials and time type in delivering.
CONTROLS: The activity of determining the range and quantity of material which should be stocked and regulation of receipts and issues of the materials.
LEAD TIME: The time normally taken in replenishing inventory after the order has been placed. It is the time interval between the ordering of inventory and time of its receipts.
CARRYING COST: Expenses incurred from storing raw materials
ORDER COST: The variable cost of placing an order for raw materials.
RE-ORDER LEVEL: This is also known as economic ordering quantity (E.O.Q). It is the most economic quantity to order; in order words, it is the ordering quantity at which the controllable cost of ordering is minimized.
RE-ORDER LEVEL: This is the point at which is essential to initiate purchase requisition for fresh supplies of the materials. This point will be higher than the minimum stock level, so as to cover such emergencies as abnormal usage of material.

REFERENCE
Ama.G.A.N. (2006).Management and cost Accounting. Nigeria: Amason
Publication venture.
Atkison.C. (2005).Inventory Management Review. London: Heinemann
Publisher.
Chukwuma.C.U. (2010).Management Accounting. Enugu:Dikasinma
Publisher.

 

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  ::   619 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  ::   447 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  ::   296 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  ::   307 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  ::   291 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  ::   258 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:115
Attribute:Questionnaire, Data Analysis
Price:₦3,000
Get The Complete Project »

Best Selling Projects

Our Archives