The Effect Of Cost-Control In The Profitability Of A Business Organisation (A Case Study Of Nigeria Bottling Company, Ilorin Plant)

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Abstract

One of the means of measuring the performance of an organization’s management is its efficiency. Efficiency reliable to the optimum utilization of inputs to derive the best achievable outputs. An efficient manager executes his responsibilities with the last resources and maximum output to accomplish the organizational goals. An important goal of a profit oriented organizational is to operate at a profit. However, if how effort to generate maximum revenue is not cost efficient, it will only be more difficult to achieve the goals. As strategies are employed to maximum returns on one hand, it is of equal importance for the management to institute conscious and methodical programmes that would assist in controlling and reducing the resources input in order that the revenue will not be totally consumed by astromical expenses. We thus discussed the two techniques that could assist management to maximize cost namely: Cost control and Cost reduction techniques. For the purpose of this study, we shall call then cost management techniques (CMS). We viewed cost control to be an application of costing to enable management to compare actual cost with planned cost and to take any necessary corrective action before it is too late. Before any control can be affected, standard or target of performance must be set against with actual cost can be measured, through this method inefficiency will be revealed. Cost control can also be viewed to be an exercise in good house keeping that is avoiding a wasteful use of valuable resources and encouraging efficiency and cost consciousness. In contrast, coat are too high, through cost control might be good cost.


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APA

Ajoke, A (2021). The Effect Of Cost-Control In The Profitability Of A Business Organisation (A Case Study Of Nigeria Bottling Company, Ilorin Plant). Afribary. Retrieved from https://afribary.com/works/the-effect-of-cost-control-in-the-profitability-of-a-business-organisation-a-case-study-of-nigeria-bottling-company-ilorin-plant

MLA 8th

Ajoke, Abdulkadir "The Effect Of Cost-Control In The Profitability Of A Business Organisation (A Case Study Of Nigeria Bottling Company, Ilorin Plant)" Afribary. Afribary, 14 Dec. 2021, https://afribary.com/works/the-effect-of-cost-control-in-the-profitability-of-a-business-organisation-a-case-study-of-nigeria-bottling-company-ilorin-plant. Accessed 09 Aug. 2022.

MLA7

Ajoke, Abdulkadir . "The Effect Of Cost-Control In The Profitability Of A Business Organisation (A Case Study Of Nigeria Bottling Company, Ilorin Plant)". Afribary, Afribary, 14 Dec. 2021. Web. 09 Aug. 2022. < https://afribary.com/works/the-effect-of-cost-control-in-the-profitability-of-a-business-organisation-a-case-study-of-nigeria-bottling-company-ilorin-plant >.

Chicago

Ajoke, Abdulkadir . "The Effect Of Cost-Control In The Profitability Of A Business Organisation (A Case Study Of Nigeria Bottling Company, Ilorin Plant)" Afribary (2021). Accessed August 09, 2022. https://afribary.com/works/the-effect-of-cost-control-in-the-profitability-of-a-business-organisation-a-case-study-of-nigeria-bottling-company-ilorin-plant