Full Project-MARGINAL COSTING TECHNIQUE AS A TOOLS FOR MANAGEMENT DECISION MAKING

Full Project-MARGINAL COSTING TECHNIQUE AS A TOOLS FOR MANAGEMENT DECISION MAKING

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MARGINAL COSTING TECHNIQUE AS A TOOLS FOR MANAGEMENT DECISION MAKING

 

ABSTRACT

This research was aimed at finding out what marginal costing is all about, to evaluate and critically examine the various application of marginal costing technique for decision and to investigate the problems arising from making use of the technique and then to provide possible solution to the problems based on the research findings, and also to make recommendations when if implemented, would help organization adopt the technique.
The data for the study were got from your principals sources questionnaire, library research, oral interview and personal observations.
The data were analysed with percentages while the tests and analysis of the research hypothesis were done using chi-square statistical technique.
This research has revealed that the importance of marginal costing technique ties in the good assistance it may give a solving problems. Marginal costing technique is concerned particularly with the ascertainment of marginal effect on profit of changes in volume or type of output by differentiating between fixed cost and variable cost. It helps to facilitate cost control and it brings out clear and simple terms which shows exact relationship between cost, selling price and volume. It is the researchers belief that those recommendation would help achieve the desired objectives. If properly adhered to by the organizations adopting the technique.

TABLE OF CONTENT

TITLE PAGE                            II
APPROVAL PAGE                        III
DEDICATION                            IV
ACKNOWLEDGEMENT                    V
ABSTRACT                            VIII
TABLE OF CONTENT                         X

CHAPTER ONE
1.0.    Introduction                        1

1.1    Statement of problem                    6
1.2    Purpose of the study                    7
1.3    Significance of the study                 7
1.4    Statement of hypothesis                8
1.5    Scope of the study                    9
1.6    Limitation of the study                    10
1.7    Definition of terms                    10

CHAPTER TWO
2.0    Review of related literature                15

2.1    Brief review                        15
2.2    Relevant and irrelevant cost for decision making18
2.3    Comparison between marginal costing Technique and Absorption technique                        38
2.4    Difference in stock variable in absorption and marginal costing approach.                        55
2.5    Advantages of marginal costing technique     61
2.6    Disadvantages of marginal costing technique    63
2.7    Importance of marginal costing technique    64

CHAPTER THREE
3.0    Research design and methodology        66

3.1    Sources of data                        67
–    Primary data                        68
–    Secondary data                    68
3.2    Sample used                        69
3.3    Method of investigation                    70

CHAPTER FOUR

4.0    Data presentation and analysis            76
4.1    Data presentation and analysis            76
4.2    Test of hypothesis                    88

CHAPTER FIVE
5.0    Summary of findings, conclusion and recommendation
5.1    Findings                            99
5.2    Conclusion                            101
5.3    Recommendations.                    104
BIBLIOGRAPHY                            106
APPENDIX                                108
QUESTIONNAIRE

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