The impacts of overhead absorption rate in pricing manufactured products. A case study of an agro based manufacturing company

 

ABSTRACT

The study is on the
impacts of overhead absorption rate in pricing manufactured products. The
choice of this research work is necessitated by the pivotal role overhead cost plays
in determining selling price and profitability of the manufactured industry.
The study used primary and secondary data. Primary data was collected through
interviews and administration of questionnaires among staff of Presco Plc
Benin, Edo State. A sample size of fifty respondents was adopted in the study.
Secondary data on the other hand was collected from journals, magazines,
textbooks, internet and official gazette of manufacturing industry. The
analysis and presentation of data collected was organized, using frequency
distribution table, simple percentage and non-parametric test of significance
known as Chi-Square (X2) to test the hypotheses formulated.  The findings of the study shows that there is
a significant relationship between overhead absorption rate and pricing of
manufactured products. The study therefore recommends among others that agro
based industry should ensure that an appropriate method of overhead costs
apportionment is adopted to enhance the overall performance of the company

 

TABLE OF CONTENTS

CHAPTER ONE: INTRODUCTION

mso-fareast-font-family:"Times New Roman"">1.1           
Background to the study

mso-fareast-font-family:"Times New Roman"">1.2           
Statement Problem

mso-fareast-font-family:"Times New Roman"">1.3           
Objective of Study

mso-fareast-font-family:"Times New Roman"">1.4           
Research Questions

mso-fareast-font-family:"Times New Roman"">1.5           
Statement of Hypothesis

mso-fareast-font-family:"Times New Roman"">1.6           
Significance of the study

mso-fareast-font-family:"Times New Roman"">1.7           
Scope and Delimitation of the study

mso-fareast-font-family:"Times New Roman"">1.8           
Definition of terms

mso-fareast-font-family:"Times New Roman"">1.9           
Historical Background of Eternit Limited
Sapele

 

CHAPTER TWO: LITERATURE REVIEW

2.1     Conceptual framework

2.2     Traditional Overhead Cost Apportionment
Method

2.3     Activity-Based Costing Method

2.4     Types of Business Overheads

2.5     The
Effect of Overhead Costs on the
Selling Price of a Product

2.6     Features
of Overhead Cost in the Selling
Price of a Product

2.7     Overhead
and Productivity in Manufacturing Industry

 

  CHAPTER
THREE: RESEARCH METHODOLOGY

3.0     Introduction

3.1     Design of the study

3.2     Population of Study

3.3     Sample Size

3.4     Sampling techniques

3.5     Research Instrument

3.6     Data Collection Instrument

3.7     Validity of research instrument

3.8     Reliability of Research Instrument

3.9     Method of Data Analysis

         

CHAPTER FOUR: PRESENTATION AND ANALYSIS OF DATA

4.0     Introduction

4.1     Presentation and analysis of Questionnaire Data

4.1     Testing of Hypothesis

 

CHAPTER FIVE: CONCLUSION, RECOMMENDATION AND OPTIONS

5.1     Summary

5.2     Conclusion

5.3     Recommendations

          REFERENCE

          APPENDIX