COST CONTROL PRACTICES AND CORPORATE PERFORMANCE OF MANUFACTURING COMPANIES IN RIVERS STATE

Abstract

This paper discusses cost Control Practices and Corporate Performance of Manufacturing Companies in Rivers State. The objective of this study is to examine the relationship between Cost Control Practices and Corporate performance of manufacturing Companies in River State. Review of extant literature through text books, journals, internet materials etc. indicate that cost accounting methods and management techniques with a goal of improving business cost efficiency by reducing costs or atleast restricting their rate of growth.Furthermore, cost control is seen as been of utmost importance in every business concern, the negligence of which will affect the earnings at any point in time. In controlling costs, wastage is eliminated during production and even during the administrative, selling and distributive activities. A good system of cost control begins with the behaviour of workers in the organization as workers are instrumental to the achievement of organizational goals. Budget and standard costing were considered as the basic tools for achieving effective Cost Control. Above all, the reviews indicated that cost control has a positive impact on corporate performance and element of cost, such as materials, labour, overhead costs and workers behaviour could be strategically controlled with measures like responsibility accounting, data collection and data reporting.