COST ACCOUNTING AND CONTROL IN THE AGRICULTURAL SECTOR PROBLEMS AND SOLUTIONS

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ABSTRACT

 

This research work was necessitated by the need to highlight, the cost accounting and control problems inherent in the agricultural sector and Nigeria economy with particular reference is the production and animal fees and concentrates.  This is with view of efficiency and the achievement of organization goals.

The stuffy was done to ascertain whether enough cost accounting information is being generated for managerial purposes by Livestock Feed Plc.  To identify the cost accounting techniques adopted by the company, investigate whether line management are deeply involved in setting standards frequently reviewed to meet the requirement of current situations.  On the basis of the above, related literature was viewed to ascertain other writers view concerning cost accounting and control as it related to production of goods.

Against this background, invaluable and reliable discoveries were made.  It was found out that the cost accounting techniques of standard costing is adopted by the company and there is absence of attainable standards line managers and specialists (such as accountants, engineers etc) are not deeply involved in setting standard cost of production.

Also, standards are not reviewed in semi-annually to accommodate current circumstances just as favourable variances is not indicated.

 

TABLE OF CONTENTS

CHAPTER ONE:

• Introduction

1.1     The Background

• Objectives of the problem
• Scope of the study and Limitation
• Definition of terms

 

CHAPTER TWO:

• Literature Review

2.1     Meaning and Purpose of Cost Accounting

• Relevant Cost Accounting Information System and Control
• Element of Cost
• The concept of Cost Control
• Cost Accounting Techniques for Cost Control Human Problem of Responsibility Accounting and its Implication on Organization Success.

 

CHAPTER THREE:

• Summary of findings

3.1     Discussion of findings

• Conclusion
• Recommendations

Bibliography

CHAPTER ONE

 

• INTRODUCTION:

The importance of the agricultural sector in Nigeria economy is generally well known.  The most public policy makers especially since independence in 1960, has expected the sector to satisfy the bulk, if not all, the food requirement of the country supply.  Most of the agricultural raw material needed by the manufacturing sector, provide adequate employment and income to the farmers and investors as well as earn substantial foreign exchange for the country.

Olieh (1984) shared the same view, before independence said “Agricultural products formed the major component of the country’s export.  The livestock subsector is supposed to provide high quality rich in protein products.

Ukpong (1993) conclude that the livestock sub-sector in Nigeria has been depressed for many years and its output declined by about 18.2 and 4.4% in 1982 and 1983.  There is high cost of finished feeds, low value of naira needed or import of raw material and equipment, also government neglect and abandonment of the sector has led the nation to economic stagnation.  The cost control will be used as a case study, since it has a great role to play in the production of animal feeds and concentrates in Nigeria.

 

1.1     BACKGROUND OF STUDY:

Livestock Feeds Plc was incorporated in 1953.  The company’s principle activity is the manufacture and marketing of animal feeds and concentrates.

In other words, the company is basically engaged in poultry farm business, production of finished feeds for birds.

 

• OBJECTIVE OF THE STUDY:

The cost accounting and control problems inherent in the production of finished fees of livestock feeds Plc.  These objectives will enable the sector to return to the part of growth and profitability.

To know whether enough cost accounting information is generated