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Assessing the Impact of Cost Accounting Techniques on Manufacturing Efficiency in Nigeria

Jonah Ngbomowa Moses Ph.D., Abiama Woyengitonbara, Okwo Chibuike Stephen Ph.D.

Abstract

This study examines the impact of cost accounting techniques on manufacturing efficiency in Nigeria, focusing on how job order costing, process costing, and budgetary control influence production output, waste reduction, and resource utilization. The research adopted a descriptive survey design, and data were collected from 138 accounting and production staff across selected manufacturing firms using a structured questionnaire. The data were analysed using descriptive statistics, Pearson correlation, and multiple regression analysis. Findings revealed that all three cost accounting techniques job order costing, process costing, and budgetary control have significant positive effects on various aspects of manufacturing efficiency. Job order costing was positively associated with increased production output, process costing was effective in minimizing production waste, and budgetary control improved the optimal utilization of labour, materials, and machines. Regression results showed that cost accounting techniques jointly explained over 52% of the variation in manufacturing efficiency. The study concludes that cost accounting techniques are strategic tools that significantly enhance operational efficiency in Nigeria's manufacturing sector. It recommends the adoption of appropriate costing methods tailored to firm specific production processes, investment in staff training, and integration of cost systems with enterprise technologies for improved performance and competitiveness.

Keywords

Cost Accounting TechniquesJob Order CostingProcess CostingBudgetary ControlManufacturing Efficiency. Production output levelwaste reductionand resource utilization

References

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