2 research outputs found
COST REDUCTION STRATEGIES AND THE GROWTH OF SELECTED MANUFACTURING COMPANIES IN NIGERIA
The problem of high manufacturing costs has led to the shutdown of many
manufacturing companies in Nigeria. This study examines the relationship between
cost reduction strategies and the growth of manufacturing companies in Nigeria using
data from annual reports of 40 manufacturing companies quoted on the Nigeria Stock
Exchange within the period of 2012-2016. 40 manufacturing companies were sampled
purposively for this study. The study took changes in material cost, changes in labour
cost and changes in administrative overhead as variables for cost reduction strategies
while changes in turnover as the variable for Growth. Correlation analysis was
conducted to determine the association cost reduction strategies and growth while,
regression analysis was used to determine the impact of cost reduction strategies on
the growth of manufacturing companies. Results showed a positive significant
relationship between cost reduction strategies and growth of manufacturing
companies in Nigeria. The study recommends that manufacturing companies should
implement value analysis in order to reduce material costs and the implementation of
cost reduction strategies in all manufacturing companies in Nigeria.
Key words: Strategic Management Accounting, Cost reduction strategies, Value
analysis, Budget Discipline, Nigeri
Cost Reduction Strategies and the Growth of Selected Manufacturing Companies in Nigeria
The problem of high manufacturing costs has led to the shutdown of many
manufacturing companies in Nigeria. This study examines the relationship between
cost reduction strategies and the growth of manufacturing companies in Nigeria using
data from annual reports of 40 manufacturing companies quoted on the Nigeria Stock
Exchange within the period of 2012-2016. 40 manufacturing companies were sampled
purposively for this study. The study took changes in material cost, changes in labour
cost and changes in administrative overhead as variables for cost reduction strategies
while changes in turnover as the variable for Growth. Correlation analysis was conducted to determine the association cost reduction strategies and growth while, regression analysis was used to determine the impact of cost reduction strategies on the growth of manufacturing companies. Results showed a positive significant berelationship between cost reduction strategies and growth of manufacturing companies in Nigeria. The study recommends that manufacturing companies should implement value analysis in order to reduce material costs and the implementation of cost reduction strategies in all manufacturing companies in Nigeri