CHAPTER
ONE
1.0 INTRODUCTION
1.01
GENERAL DESCRIPTION OF THE
STUDY
In
an organization measurement of organizational efficiency is essential to the
realization of set objectives which such organization is pursuing without measurement,
organization plans, budget/or standards will be like a moving vehicle without a
driver it is a mechanism that enables management to work in accordance with
plans/or standards.
Measurement
is future oriented, directing the activities of an organization as they occur.
It is the primary function of the management to design all measurement techniques,
necessary to effect correction or trace fault and effect changes when necessary
to be able to meet the standard set by the organization the ability of the
management team to effect or institute a right and appropriate measure
techniques to determine the success of the organization. It is also important
to stress here that if a wrong measuring techniques, is applied, wrong result
will be achieved, or derivations from planned/budgeted activities are bound to
occour, to the detriment of the company. Therefore, the measuring techniques
chosen must be properly examined to X-ray the problems facing the organization,
and chose among all the best alternative (s) that will solve the problems. It
was observed that manufacturing companies tend to do well in their system of
controls, when that set standards of activities in their respective companies
this project therefore examines the application of cost accounting as a
technique for measuring organizational efficiency. A case study of united
cement company of Nigeria Ltd Calabar, Cross River State.
1.02
HISTORY OF THE CASE STUDY
The united cement company of Nigeria
Ltd (Unicem), Nigeria’s third largest cement manufacturer and supplier of high
quality cement, is a private limited company, located in Cross River State,
Nigeria. Our core market are the south-south and south-east regions of Nigeria.
We
are relatively young company’s having been established in 2002 after acquiring
the assets of moribund calabar cement company (Calcemco). On establishing
unicem, a greenfield cement manufacturing plant was constructed at muamosing
40km north-east of calabar, cross river state.
Unicem
has its head office based in Calabar and all cement manufacturing operations consolidated
at the mfoamosing plant. The Mfamosing plant, a modern production capacity of
2.5 million tons was formally inaugurated on May 2009 by the then president of
the Federal Republic of Nigeria, his Excellency, and Late Alhaji Umarau Musa
Yaradua. In 2102, unicem expanded its production port folio and currently
offers to customers the option of cement products catering for general purpose
and specialized applications.
To meet the increasing demand for our
products, on September 2nd 2014, a ground breaking ceremony for
additional 2.5 million metric tons was performed by the president of Nigeria,
his Excellency, Dr. Goodluck Ebele Jonathan (GCFR) presented by the vice
president, His Excellency Arch, Namadi Sambo. The 84 billion Naira project on
completion in 2016 will double our production capacity to 5 million metric tons
per annum thereby consolidating our position as Nigeria’s third largest manufacturer
of cement.
1.03
STATEMENT OF THE PROBLEM
This study is centered on the
examination of the application of cost accounting as a technique for measuring
organizational efficiency, A case study of united cement company of Nigeria Ltd
Calabar, Cross River State.
However, these below sub-problems
should be properly examined.
i.
Background/history
of united cement company of Nigeria Ltd Calabar Cross River State
ii.
Meaning
and scope of cost accounting
iii.
Meaning
and scope of measures in an organization
iv.
Application
of cost accounting technique
1.04
PURPOSE OF THE STUDY
The primary purpose or objective of
this research is to enhanced/update the horizon or scope of knowledge of the
researcher on the application of cost accounting as a technique for measuring
organizational efficiency.
In addition the following sub-objective
will be achieved.
i.
Tracing
the history of united cement company of Nigeria
ii.
Understanding
the meaning and scope of cost accounting
iii.
Understanding
the meaning and scope of control in a cement company.
iv.
Understanding
the application of cost accounting as a technique for measuring organizational
efficiency
1.05
RELEVANT RESEARCH QUESTION
In the course of carrying out this research
the researcher raised the following questions, which will guide him in solving
the problem:
1.
What
is Accounting?
2.
What
is cost accounting
3.
What
is management accounting
4.
What
is the meaning of costing technique?
5.
Has
cost accounting technique anything to do with costing methods?
6.
Does
cost accounting technique have any contribution as to the determination of
price?
7.
Can
cost reduction be achieved with the use of costing technique?
8.
What
are the information needs of management?
9.
What
are cost unit and cost centers?
10.
What
is conversion cost?
1.06
SCOPE OF THE STUDY
This is centered on the application of
cost Accounting as a technique for measuring organizational efficiency. A case
study of united cement company Ltd Calaba cross River State
1.07
ASSUMPTION
The following assumption are
stipulated:
1.
That
the problems of the study are properly defined
2.
That
the objectives of the study are properly stipulated
3.
That
the relevant research questions outline is proper in completing the project
4.
The
scope of knowledge of the research has been increased on the application of
cost accounting as a technique for measuring organizational efficiency
1.08
SIGNIFICANT OF THE STUDY
The following are the significant of
the study, as outlined
1.
The
research has enabled the researcher to update his knowledge about united cement
company of Nigeria ltd.
2.
The
study has assisted the researcher to updated his knowledge about the
application of cost accounting as a technique for meaning organization
efficiency.
3.
This
project (study) will continually serve as a reference material to the student
and lecturers of Akanu Ibiam Federal Polytechnic, and beyond.
1.09
DEFINITION OF UNFAMILIAR FARMS
1. COST
ACCOUNTING: cost
accounting is define as the application of accounting and costing principles,
methods and techniques for the assortment of cost and the analysis servicing
and/or excess expenditure where actual cost differ from previous experiment or
from standard.
2.
MEASUREMENT: the process of observing and recording
the observation that are collected as part of a research effort.
3.
ORGANIZATION: an organization is a group of people
with a particular purpose, such as a business or government department.
4.
APPLICATION: application is the action of putting
something into operation.
5.
EFFICIENCY: efficiency is the extent to which
time, effort, or cost is well-used for the intended task or purpose.
6.
TECHNIQUE: task, especially the execution or
performance of an artistic work or a scientific procedure.
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