Material Corrosion and Maintenance Cost Dynamics: Integrating Chemical Durability into Cost Accounting Systems in Listed Pharmaceutical Firms in Nigeria
Abstract
This study investigates the integration of material corrosion and chemical durability into cost accounting systems and their effects on maintenance cost dynamics and cost efficiency in listed pharmaceutical firms in Nigeria. The research adopts a quantitative approach, employing a structured questionnaire administered to 120 accounting and maintenance personnel across eight listed pharmaceutical firms. Descriptive and inferential statistics were used to analyse the data, with multiple regression and moderation analysis applied to test the study hypotheses. The result revealed that material corrosion has a significant positive effect on maintenance cost dynamics (β = 0.58, p < 0.001), whereas chemical durability significantly reduces the impact of corrosion on maintenance costs (interaction β = -0.15, p = 0.003). Additionally, maintenance cost dynamics negatively influence cost efficiency (β = -0.42, p < 0.001), while cost accounting systems positively enhance efficiency (β = 0.51, p < 0.001). These findings confirm that proactive integration of material durability into accounting systems mitigates maintenance cost escalation and improves operational performance. The study concludes that linking material science variables with cost accounting frameworks provides a strategic avenue for improving cost efficiency and resource optimisation in the pharmaceutical industry. It recommends the adoption of chemically durable materials, enhanced maintenance planning, and the incorporation of corrosion metrics into cost accounting practices to sustain operational and financial performance.
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