APPLICATION OF MARGINAL COSTING TECHNIQUE IN A MANUFACTURING COMPANY.

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APPLICATION OF MARGINAL COSTING TECHNIQUE IN A MANUFACTURING COMPANY (A CASE STUDY OF NESTLE NIGERIA PLC)

ABSTRACT

This research work examines the importance of application of marginal costing technique in a manufacturing company using Nestle Nigeria Plc as a case study. It shows that application of marginal costing technique is a survival tool in Nigeria present economic situation. It also shows that effective control of production and distribution of operational cost arises from the intelligent application of operational control, adequate cost accounting systems, analysis of cost data and variances, formulation of product policies and using of already established budgets. In carrying out this research work, primary and secondary data were used. The primary source of data was through questionnaires, which was administered to the targeted staff. The secondary data method was also used to collect information for this study and it involves engaging in desk research with review of relevant textbooks, journals and magazines. The research study revealed that application of marginal costing is a necessary tool for organization overall performance. Based on the finding of this study, management should put adequate measure in place to ensure compliance with standard, appreciate the need for training of staff to improve their level of competence in order to discharge their duties effectively and efficiently.

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