Activity Based Costing and Product Pricing Decision: the Nigerian Case

This paper examined activity based costing and product pricing decisions in Nigeria so as to ascertain whether activity based costing have the ability to enhance profitability and control cost of manufacturing firms. Towards this end, a multiple correlation and regression estimation technique was used in analyzing the data obtained in the study. The study found that activity based costing affects product costing and pricing decision. In addition, the results showed that improved profitability and cost control can be achieved by implementing activity based costing approach by manufacturing firms. The implication is that traditional costing approach fails in many pricing situations by arbitrarily allocating indirect cost and activity based costing helps in allocating indirect cost accurately. Thus, it was recommended amongst others that activity based costing need to be practiced, maintained and implemented by manufacturing firms since it has a broad range of uses for a wide variety of company functions and operations in the area of process analysis, strategy support, time-based accounting, monitoring wastage, as well as quality and productivity management

An Empirical Analysis of the Benefits of Cashless Economy on Nigeria’s Economic Development

The Central Bank of Nigeria (CBN) cashless economy policy is of no doubt an essential to the development of Nigeria’s economy. The purpose of this study is to expose the merits of the cashless economy to Nigeria populace, and as well the pains of a cash-based economy. The accidental sampling method was used in the selection of a sample size of 520 persons, out of which 468 persons representing 90 percent of the sampled persons completed and returned the questionnaires administered to them. Collected data were analyzed using the simple percentages method and the hypotheses were tested with the Chi-square and Analysis of variance (ANOVA) tests. The Chi-square test on the first hypothesis reveals a positive and significant relationship between cashless economy and transparency, accountability and reduction cash-related fraud with F-ratio of 70.175> F-critical of 9.488 at 0.05 level of significance with a 4 degree of freedom, while the ANOVA test on the second hypothesis finds that cashless economy has a positive impact on economy development with F-ratio of 51.37> F-critical of 5.32 at 0.05 level of significance with 1 to 8 degree of freedom. The study recommends adherence to minimum security standards and deployment of more ATMs for smooth implementation of the cashless policy in Nigeria. Keywords: Cash-based economy, Cashless economy, Economic development, E-payment

Taxation as an Instrument of Economic Growth (The Nigerian Perspective)

This paper examines taxation as an instrument of economic growth in Nigeria. Using annual time series data sourced from the Central Bank of Nigeria (CBN) Statistical Bulletin during the period 1980 through 2013, a linear model of Corporate Income Tax (CIT), Value Added Tax (VAT) and Economic Growth (GDP) was estimated using the Ordinary Least Square (OLS) technique.  The empirical resultsuggests that the hypothesized link among corporate income tax, value added tax and economic growth indeed exist in the Nigerian context. Thus the result offer tantalizing evidence that taxation is an instrument of economic growth in Nigeria. This conclusion points to the need for additional measures by government in ensuring that taxpayers do not avoid and evade tax so that income can be properly redistributed in the economy. In addition, regulatory authorities charged with the sole responsibility of collecting tax should further be strengthened to enforce compliance by taxpayers. Above all, the tax collected should be properly distributed so that economic growth can be properly harnessed. Keywords: Taxation; Economic Growth; Development; Time Series Data;Nigeri

Vicissitudes in Financial Reporting in Nigeria: What Role Does Corporate Governance and Ethics Play?

This paper examined if corporate governance and ethics play a fundamental role in the vagaries in financial reporting in Nigeria.   Expo-facto design and secondary data from annual reports and accounts and Nigerian Stock Exchange Factbook of selected quoted manufacturing firms during 2002-2017 were obtained.  Governance measures of board gender diversity (BGD) and board chairman shares ownership (BCSO), as well as ethics was measured by dummy variables.  Fixed and random effects regression models were employed to validate the nexus between the dependent (financial reporting) and independent (corporate governance and ethics) variables.  Based on the analysis, of data, it was revealed that corporate governance and ethics have a major role in the vicissitudes in financial reporting, especially in the aspect of performance measures of corporate entities.  Also, it was found that corporate governance measures of board gender diversity and board chairman shares ownership and ethics jointly and significantly influence financial reporting among quoted manufacturing companies in Nigeria.  Hence, it was recommended among others that regulatory bodies of quoted companies in Nigeria should established more governance codes that help in including more women on the board as well as emphasizing board chairman shares ownership so as to promote financial reporting of quoted companies in Nigeria.  In addition, SEC should ensure that codes of governance provisions be strictly adhered to by quoted companies as it will promote transparency and accountability in financial reporting

Audit Tenure: An Assessment of its Effects on Audit Quality in Nigeria

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Personal Income Tax (PIT) and Economic Growth in Nigeria: A Vector Autoregression (VAR) Analysis

Purpose of the article: Quite a number of studies have shown that tax revenues significantly affect the economic growth in both developed and developing countries; however, there is scanty empirical evidence as regards whether personal income tax (a major component of tax revenue) affects economic growth in Nigeria. Methodology/methods: The ex-post facto research design was adopted and the theoretical framework was anchored on Laffer Curve Theory (LCT). Yearly time series data of personal income tax and the gross domestic product (GDP) were obtained from the Federal Inland Revenue Service (FIRS) and the Central Bank of Nigeria (CBN) statistical bulletins during theperiod 1987–2017. The data obtained was analysed using the Vector Autoregression (VAR) model via STATA 13.0. Scientific aim: This paper investigated the effect of personal income tax (PIT) on economic growth in Nigeria. Findings: The findings of the study revealed that personal income tax has significantly contributed to the level of economic growth in Nigeria, though negatively. Contributions: Based on the findings of the study, it was recommended that the regulatory framework of taxation in the country should put in place a more effective tax revenue generation system that can enhance better administration of personal income tax. The measure should emphasise and address the accountability of personal income tax. In addition, a well-equipped database on personal income tax or taxpayers should be established by the governments with the aim of identifying all possible sources of income of taxpayers

73 Activity Based Costing and Product Pricing Decision: the Nigerian Case

This paper examined activity based costing and product pricing decisions in Nigeria so as to ascertain whether activity based costing have the ability to enhance profitability and control cost of manufacturing firms. Towards this end, a multiple correlation and regression estimation technique was used in analyzing the data obtained in the study. The study found that activity based costing affects product costing and pricing decision. In addition, the results showed that improved profitability and cost control can be achieved by implementing activity based costing approach by manufacturing firms. The implication is that traditional costing approach fails in many pricing situations by arbitrarily allocating indirect cost and activity based costing helps in allocating indirect cost accurately. Thus, it was recommended amongst others that activity based costing need to be practiced, maintained and implemented by manufacturing firms since it has a broad range of uses for a wide variety of company functions and operations in the area of process analysis, strategy support, time-based accounting, monitoring wastage, as well as quality and productivity management

Environmental Cost Accounting Information and Strategic Business Decision in Nigeria

This study aimed at examining environmental cost accounting information and strategic business decision in Nigeria. The general assumption that conventional cost accounting does not have the ability to provide absolute information for evaluating the environmental behaviour of an organization and its economic consequences has motivated this study. Towards achieving this, secondary data was employed and a linear model was specified. Findings indicated that environmental cost accounting information as it relates to strategic business decision is valuerelevant. It was on this note that we recommended firms to constantly reposition their accounting system in order to provide information on environmental costs so that the true costs in an organization can be ascertained and properly allocated. Also, due attention should be paid to waste management costs, employee health costs, investment financing costs, compliance and environmental costs and all environmental related costs by manufacturing concerns since they influence strategic decision. Our study is one of those that have explored the issue of environmental cost accounting relevance in strategic business decision in the Nigerian context

Environmental Cost Accounting Information and Strategic Business Decision in Nigeria

This study aimed at examining environmental cost accounting information and strategic business decision in Nigeria. The general assumption that conventional cost accounting does not have the ability to provide absolute information for evaluating the environmental behaviour of an organization and its economic consequences has motivated this study. Towards achieving this, secondary data was employed and a linear model was specified. Findings indicated that environmental cost accounting information as it relates to strategic business decision is valuerelevant. It was on this note that we recommended firms to constantly reposition their accounting system in order to provide information on environmental costs so that the true costs in an organization can be ascertained and properly allocated. Also, due attention should be paid to waste management costs, employee health costs, investment financing costs, compliance and environmental costs and all environmental related costs by manufacturing concerns since they influence strategic decision. Our study is one of those that have explored the issue of environmental cost accounting relevance in strategic business decision in the Nigerian context