EVOLUTION OF FACTORS AFFECTING THE CONCEPT OF PROFITABILITY AS A GUIDE TO POLICY DECISION (A CASE STUDY OF SELECTED INDUSTRY) ENUGU
EVOLUTION OF FACTORS AFFECTING THE CONCEPT OF PROFITABILITY AS A GUIDE TO POLICY DECISION (A CASE STUDY OF SELECTED INDUSTRY) ENUGU
Management is the hub of any industry and must utilize all the resources at its disposal to achieve the goals of their respective industries in any industry both private and public. The process of decision should be quick if the industry intends to remain a leader. As the findings have shown that policy decision have a strong effect on profitability management is therefore advised to be very careful in taking decision.
Government should establish industries estate with at least 70,000 square meters per industry and allocate them to industrialist at a premium locate to development bank should be reconstituted and revitalized to be able to supply intending industrialists with the required capital. The manufactures Association of Nigeria (M.A.N) is advised to establish a training center where intending entrepreneurs will be trained in the act of entrepreneurship.
Before making economic policies, government should consider the implications and impact of such policies on the manufacturing industries. The industries that are strong dependent on government legislation should be classified and their case treated differently government should come up with a policy that infact industries are to receive both financial and moral support for at least its first five years of operation.
In industries they should always make sure that they employ the service of local accountant.
INTRODUCTION 1
2.1 COST 11
3.1 RESEARCH DESIGN 36
3.2 AREA OF STUDY 36
3.3 POPULATION 37
3.4 SAMPLE AND SAMPLING PROCEDURE 37
3.5 INSTRUMENT FOR DATA COLLECTION 38
3.6 VALIDATION OF THE INSTRUMENT 38
3.7 RELIABILITY OF THE INSTRUMENT 39
3.8 ADMINISTRATION OF THE RESEARCH –
INSTRUMENT 39
3.9 METHOD OF DATA ANALYSIS 40
BIBLIOGRAPHY 69
APPENDIX 70
QUESTIONNAIRE 70
INTRODUCTION
According to Harper (1977) the concept of profitability can be defined as the concept which provides management with alternative course of action accordance with the various degrees of profitability sating clearly in relevant cost accounting form the cost and benefits association with individual projects which enables management to select the most profitable.
Most of the policy decision of manufacturing are generally directed towards profitability policy decision made under this concept has a direct effect of increasing and enhancing the general profitability of the manufacturing industry concerned.
The origin of this concept can be traced back to this era of industrial revolution. Prior to this era, industries were run as family concerns just to maintain in trade brought about the industrial revolution, most business grew from the usual family arrangement to large groups. Resources were pulled together and handed over to other people to manage for the owners.
Naturally, Resources owners must expect a profitable returns from the investments, this urgent obligation forced management to seek ways of carrying out the activities so as to make profitability returns to the resources owners.. Investment grew in all dimension until the first and second world wars, one would have expected that after the world war industrialization would have been abandoned by as we have seen to day. This was fortunately far from being so.
Rather manufacturing industries increases in larger numbers grew in importance and also in complexity all in a bid to meet the improved having demands the over developing world, this complexity in the industrial sector gave rise to the need for policy statements on certain issues.
Materials must have to be bought enough Quantity to avoid stock out the same time labour which is a very violate commodity must be allowed to operate in a conducive environment so as to reap the benefit of hiring labour prior to commencement or an expansion . general ecological consideration must be reviewed, thereafter site is acquired structure erected, machine and equipment installed.
On take off, the manufacturing industry must move with the changing technology, meet its social responsibilities operate under government stipulations, pay tax as and when due. Meet the expectations of the shareholders.
High administrative cost, cost of changing technology fierce competition, scare resources, falling economy, cost of government restrictions, the need for maximization of shareholders wealth, poor capital base etc; must be accommodation and adjusted in such a way that total cost of manufacturing a product will not only be less than sales revenue but give a good profit margin.
This stipulation of operating under may uncompromising variables gave rise to the need for policy decision on such things as
The nature of this research project required theoretical approach and analysis which will cover the three dimensional focus of the research, the research focus on the three majors areas.
These three combined to give a broader view of the factor affecting the concept the other words, this helped the researcher to determine the effects of those factors on the researcher on the profit position and made subsequence recommendations.
Give the above, the theoretical orientation what best provide the researcher the framework for analyzing the factors affecting the concept of profitability were.
4 Location of their industries, industries are often set up near in other to take advantage of external economics of scale by this we mean the cost saving advantage an industry enjoy by being close to other industries in same business or track such advantages are:
- Location technical specialized course for the industries are provided by higher institutions of learning near than.
- Subsidiary industries located in the area supply processed raw material components directly to them.
On the political factors, the instability of government, restrictions or certain industrial activities and active intervention were also theories which help the researcher to find out the factors affecting the concept of profitability.
The theory of cost of marginal costing were indispensable tools in their research.
This research work entitled :-
An evolution of factors affecting the concept of profitability as a guide to policy decision is meant to solve among other things.
The following problems;-
To ascertain the effect of policy decision on concept of profitability.
To guide this study the following questions were formulated.
Ho1 The following hypothesis were formulated 0.05 between the senior staff of policy decision on concept of profitability.
Ho2 There is no difference at profitability level 0.05 between senior staff and mean perception on availability of factors for future researchers and investors in Enugu accounting and municipality.
Student of accounting and financial will find the study useful in terms of cost as they affect the co-operate profit. Also to benefit from this are they preparing feasibility study for terms of cost of industries to be said in Enugu.
The study will also help a potential foreign investor to obtain both theoretical and practiced information on the profitability of establish a manufacturing industry having known the factors affecting g profitability.
Finally, it will enable the researcher to have an depth knowledge of this study and open new areas of further researcher for the students and industries researchers.
Ho3 There is no significant different at profitability level 0.05 between the Senior staff and Junior staff mean perception on the effect of government polices on profitable industries.
The scope of this study is limited to one industry in Enugu municipality. This industry in Nigeria gas Limited Emene.
The study of the factors affecting the concept of profitability as a guide to policy decision is unique to the extend that it pursed a focus in trying to x –ray the concept of profitability and factor affecting it as a guide to policy decision.
The study is significant in the sense that it will provide both sound theoretical and practical base for the future researchers and investors in Enugu municipality.
Download our android mobile app for more materials
ORDER NOW
COMPLETE MATERIAL COST N2,500 Or $10. FRESH PROJECT MATERIAL COST 50,000 NAIRA FOR UNDERGRADUATE, OTHERS 100,000 -200,000 NAIRA.
Foreign Transaction For Dollars Payment :
Bank Name: GTBank
Branch Location: Enugu State,Nigeria.
Account Name: Chi E-Concept Int’l
Account Number: 0117780667.
Swift Code: GTBINGLA
Dollar conversion rate for Naira is 175 per dollar.
ATM CARD: YOU CAN ALSO MAKE PAYMENT USING YOUR ATM CARD OR ONLINE TRANSFER. PLEASE CONTACT YOUR BANK SECURITY FOR GUIDE ON HOW TO TRANSFER MONEY TO OTHER BANKS USING YOUR ATM CARD. ATM CARD OR ONLINE BANK TRANSFER IS FASTER FOR QUICK DELIVERY TO YOUR EMAIL . OUR MARKETER WILL RESPOND TO YOU ANY TIME OF THE DAY. WE SUPPORT CBN CASHLESS SOCIETY.
OR
PAY ONLINE USING YOUR ATM CARD. IT IS SECURED AND RELIABLE.
form>DELIVERY PERIOD FOR BANK PAYMENT IS LESS THAN 24 HOURS
CALL OUR CUSTOMERS CARE OKEKE CHIDI C ON : 08074466939,08063386834.
AFTER PAYMENT SEND YOUR PAYMENT DETAILS TO
08074466939 or 08063386834, YOUR PROJECT TITLE YOU WANT US TO SEND TO YOU, AMOUNT PAID, DEPOSITOR NAME, UR EMAIL ADDRESS,PAYMENT DATE. YOU WILL RECEIVE YOUR MATERIAL IN LESS THAN 2 HOURS ONCE WILL CONFIRM YOUR PAYMENT.
WE HAVE SECURITY IN OUR BUSINESS.
PROPOSAL
Management is the hub of any industry and must utilize all the resources at its disposal to achieve the goals of their respective industries in any industry both private and public. The process of decision should be quick if the industry intends to remain a leader. As the findings have shown that policy decision have a strong effect on profitability management is therefore advised to be very careful in taking decision.
Government should establish industries estate with at least 70,000 square meters per industry and allocate them to industrialist at a premium locate to development bank should be reconstituted and revitalized to be able to supply intending industrialists with the required capital. The manufactures Association of Nigeria (M.A.N) is advised to establish a training center where intending entrepreneurs will be trained in the act of entrepreneurship.
Before making economic policies, government should consider the implications and impact of such policies on the manufacturing industries. The industries that are strong dependent on government legislation should be classified and their case treated differently government should come up with a policy that infact industries are to receive both financial and moral support for at least its first five years of operation.
In industries they should always make sure that they employ the service of local accountant.
CHAPTER ONE
INTRODUCTION 1
- BACKGROUND OF STUDY 1
- STATEMENT OF THE PROBLEM 7
- THE PURPOSE OF THE STUDY 8
- RESEARCH QUESTION 8
- HYPOTHESIS 9
- SCOPE OF THE STUDY 10
- SIGNIFICANCE OF THE STUDY 10
CHAPTER TWO
- REVIEW OF LITERATURE 11
2.1 COST 11
- COSTING METHOD 29
- COSTING TECHNIQUES 32
CHAPTER THREE
- RESEARCH METHODOLOGY 36
3.1 RESEARCH DESIGN 36
3.2 AREA OF STUDY 36
3.3 POPULATION 37
3.4 SAMPLE AND SAMPLING PROCEDURE 37
3.5 INSTRUMENT FOR DATA COLLECTION 38
3.6 VALIDATION OF THE INSTRUMENT 38
3.7 RELIABILITY OF THE INSTRUMENT 39
3.8 ADMINISTRATION OF THE RESEARCH –
INSTRUMENT 39
3.9 METHOD OF DATA ANALYSIS 40
CHAPTER FOUR
- DATA PRESENTATION AND RESULTS 49
CHAPTER FIVE
- DISCUSSION, IMPLICATION, RECOMMENDATION
- DISCUSSION OF RESULTS 62
- CONCLUSION 64
- IMPLICATIONS 65
- RECOMMENDATIONS 65
- SUGGESTION FOR FURTHER STUDY 67
- LIMITATION OF THE STUDY 67
BIBLIOGRAPHY 69
APPENDIX 70
QUESTIONNAIRE 70
LIST OF TABLE
1 TEST OF RESEARCH QUESTION I
- TEST OF HYPOTHESIS I
- TEST OF RESEARCH QUESTIONS 2
- TEST OF HYPOTHESIS 2
- TEST OF RESEARCH QUESTION 3
- TEST OF HYPOTHESIS 3
- TEST OF RESEARCH QUESTION 4
- TEST OF HYPOTHESIS
CHAPTER ONE
INTRODUCTION
- BACKGROUNG TO THE STUDY
According to Harper (1977) the concept of profitability can be defined as the concept which provides management with alternative course of action accordance with the various degrees of profitability sating clearly in relevant cost accounting form the cost and benefits association with individual projects which enables management to select the most profitable.
Most of the policy decision of manufacturing are generally directed towards profitability policy decision made under this concept has a direct effect of increasing and enhancing the general profitability of the manufacturing industry concerned.
The origin of this concept can be traced back to this era of industrial revolution. Prior to this era, industries were run as family concerns just to maintain in trade brought about the industrial revolution, most business grew from the usual family arrangement to large groups. Resources were pulled together and handed over to other people to manage for the owners.
Naturally, Resources owners must expect a profitable returns from the investments, this urgent obligation forced management to seek ways of carrying out the activities so as to make profitability returns to the resources owners.. Investment grew in all dimension until the first and second world wars, one would have expected that after the world war industrialization would have been abandoned by as we have seen to day. This was fortunately far from being so.
Rather manufacturing industries increases in larger numbers grew in importance and also in complexity all in a bid to meet the improved having demands the over developing world, this complexity in the industrial sector gave rise to the need for policy statements on certain issues.
Materials must have to be bought enough Quantity to avoid stock out the same time labour which is a very violate commodity must be allowed to operate in a conducive environment so as to reap the benefit of hiring labour prior to commencement or an expansion . general ecological consideration must be reviewed, thereafter site is acquired structure erected, machine and equipment installed.
On take off, the manufacturing industry must move with the changing technology, meet its social responsibilities operate under government stipulations, pay tax as and when due. Meet the expectations of the shareholders.
High administrative cost, cost of changing technology fierce competition, scare resources, falling economy, cost of government restrictions, the need for maximization of shareholders wealth, poor capital base etc; must be accommodation and adjusted in such a way that total cost of manufacturing a product will not only be less than sales revenue but give a good profit margin.
This stipulation of operating under may uncompromising variables gave rise to the need for policy decision on such things as
- Siting an industry
- Expansion of an existing industry
- Introduction of a new product
- A change in production design
- Sell or process further
- Close down
- The cost accountant supplies statement of anticipated cost and profit relating to such problems aformentationed in manufacturing industries where the concept of profitability operates without militating factors there is bound to be profit.
The nature of this research project required theoretical approach and analysis which will cover the three dimensional focus of the research, the research focus on the three majors areas.
- The exogenous factor affecting the concept of profitability as a guide to policy decision.
- The endogenous factor affecting the concept.
- The political factors
These three combined to give a broader view of the factor affecting the concept the other words, this helped the researcher to determine the effects of those factors on the researcher on the profit position and made subsequence recommendations.
Give the above, the theoretical orientation what best provide the researcher the framework for analyzing the factors affecting the concept of profitability were.
- Theory of location of industry which states that nearness to raw materials availability of labour affects the profitability of manufacturing industries. The location of extractive industries for example depend on where raw materials are to be found. Also mining industries depend on geological, surveys, agricultural industries depend on side condition and climate where the required raw materials are heavy and bulky the industry will be set up near source of raw material in order to reduce cost.
- Theory of nearness to market, bulky or heavy goods are expensive to transport Based on this, the theory therefore, states that such goods be produced near the market.
- Other general economic factors industries
- requiring thermal neat need to be located near local mines
- Steel industries.
- There must be ready supply of labour especially stilled labour.
- There should be good transport facilities for the movement of both raw materials and finished goods eg: Road, Railway, water ways and airport.
4 Location of their industries, industries are often set up near in other to take advantage of external economics of scale by this we mean the cost saving advantage an industry enjoy by being close to other industries in same business or track such advantages are:
- Location technical specialized course for the industries are provided by higher institutions of learning near than.
- Subsidiary industries located in the area supply processed raw material components directly to them.
- Tensa (1979) said that coal services such as banking and insurance and some other economic and financial services are provided constable and new (1976) persisted that the endogenous theory which best suits the purpose of the research is the theory of operation management which is of the view that workers have the same objectives with that of management will assure a responsible attitude towards organization decision making procedure.
On the political factors, the instability of government, restrictions or certain industrial activities and active intervention were also theories which help the researcher to find out the factors affecting the concept of profitability.
The theory of cost of marginal costing were indispensable tools in their research.
- STATEMENT OF THE PROBLEMS
This research work entitled :-
An evolution of factors affecting the concept of profitability as a guide to policy decision is meant to solve among other things.
The following problems;-
- Effecting of policy decision on profitability concept in some selected industries
- Factors of production as a necessary condition for selling up an industry needs to be available.
- How ecology affect the concept of profitability.
- How Government policies affect the concept of profitability.
- PURPOSE OF THE STUDY
- The purpose of this study includes the followings:-
To ascertain the effect of policy decision on concept of profitability.
- To find out the availability of factors of production.
- To determine the effect of ecology on concept profitability.
- determing how government policies after the concept of profitability.
- RESEARCH QUESTION:-
To guide this study the following questions were formulated.
- To what extent does policy decision have effect on concept of profitability
- What are the extents to which the factor production are available setting up industries ?
- How does ecological consideration effect the concept of profitability in industries to what extent does government policies effect the concept of profitability.
- HYPOTHESIS
Ho1 The following hypothesis were formulated 0.05 between the senior staff of policy decision on concept of profitability.
Ho2 There is no difference at profitability level 0.05 between senior staff and mean perception on availability of factors for future researchers and investors in Enugu accounting and municipality.
Student of accounting and financial will find the study useful in terms of cost as they affect the co-operate profit. Also to benefit from this are they preparing feasibility study for terms of cost of industries to be said in Enugu.
The study will also help a potential foreign investor to obtain both theoretical and practiced information on the profitability of establish a manufacturing industry having known the factors affecting g profitability.
Finally, it will enable the researcher to have an depth knowledge of this study and open new areas of further researcher for the students and industries researchers.
Ho3 There is no significant different at profitability level 0.05 between the Senior staff and Junior staff mean perception on the effect of government polices on profitable industries.
- SCOPE OF THE STUDY
The scope of this study is limited to one industry in Enugu municipality. This industry in Nigeria gas Limited Emene.
- SIGNIFIANCE OF THE STUDY
The study of the factors affecting the concept of profitability as a guide to policy decision is unique to the extend that it pursed a focus in trying to x –ray the concept of profitability and factor affecting it as a guide to policy decision.
The study is significant in the sense that it will provide both sound theoretical and practical base for the future researchers and investors in Enugu municipality.
Download our android mobile app for more materials
ORDER NOW
COMPLETE MATERIAL COST N2,500 Or $10. FRESH PROJECT MATERIAL COST 50,000 NAIRA FOR UNDERGRADUATE, OTHERS 100,000 -200,000 NAIRA.
MAKE YOUR PAYMENT INTO ANY OF THE FOLLOWING BANKS:
GTBANK
Account Name : Chi E-Concept Int’l
ACCOUNT NUMBER: 0115939447
Account Name : Chi E-Concept Int’l
ACCOUNT NUMBER: 0115939447
First Bank:
Account Name: Chi E-Concept Int’l
Account Name: 3059320631
Account Name: Chi E-Concept Int’l
Account Name: 3059320631
Foreign Transaction For Dollars Payment :
Bank Name: GTBank
Branch Location: Enugu State,Nigeria.
Account Name: Chi E-Concept Int’l
Account Number: 0117780667.
Swift Code: GTBINGLA
Dollar conversion rate for Naira is 175 per dollar.
ATM CARD: YOU CAN ALSO MAKE PAYMENT USING YOUR ATM CARD OR ONLINE TRANSFER. PLEASE CONTACT YOUR BANK SECURITY FOR GUIDE ON HOW TO TRANSFER MONEY TO OTHER BANKS USING YOUR ATM CARD. ATM CARD OR ONLINE BANK TRANSFER IS FASTER FOR QUICK DELIVERY TO YOUR EMAIL . OUR MARKETER WILL RESPOND TO YOU ANY TIME OF THE DAY. WE SUPPORT CBN CASHLESS SOCIETY.
OR
PAY ONLINE USING YOUR ATM CARD. IT IS SECURED AND RELIABLE.
form>DELIVERY PERIOD FOR BANK PAYMENT IS LESS THAN 24 HOURS
CALL OUR CUSTOMERS CARE OKEKE CHIDI C ON : 08074466939,08063386834.
AFTER PAYMENT SEND YOUR PAYMENT DETAILS TO
08074466939 or 08063386834, YOUR PROJECT TITLE YOU WANT US TO SEND TO YOU, AMOUNT PAID, DEPOSITOR NAME, UR EMAIL ADDRESS,PAYMENT DATE. YOU WILL RECEIVE YOUR MATERIAL IN LESS THAN 2 HOURS ONCE WILL CONFIRM YOUR PAYMENT.
WE HAVE SECURITY IN OUR BUSINESS.
Comments
Post a Comment