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An Evaluation of the Application and Relevance of Costing Techniques in Services Oriented Organization (A CASE STUDY OF NITEL NEPA)

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An Evaluation of the Application and Relevance of Costing Techniques in Services Oriented Organization (A CASE STUDY OF NITEL NEPA)

 

ABSTRACT

 

The aim of the study is to find out the importance of using costing techniques such as standard costing, direct costing, absorption costing etc in the measurement of service oriented organizations. And also to show the extent on the less of these techniques in planning in the organization.

 

For the purpose of this research, questionnaire and interview method will be used to collect data from the sampled numbers of the organizations. The response will be analyzed with the less of ratios, tables, percentages etc.

 

After a careful examination of the study, the research revealed that the major problems militating  against the use of these techniques in filling major managerial decisions is the mobility of the accounts department of these techniques organization, to prepare different types of the techniques and on time. Based on the findings to be carried out, the researcher will recommend that, the financial accounting system of the organization have to be computerized so that its sub-systems will provide to relevant cost data required by the cost accounting system. And that, its is only when the service  oriented organizations practically use these techniques in making decision that its relevance will be assured.

 

TABLE OF CONTENT

 

Cover page

 

Title page

 

Approval page

 

Dedication

 

Acknowledgment

 

Abstract

 

Table of content

 

CHAPTER ONE

 

1.0 INTRODUCTION

 

1.1  Background of the study

 

1.2  Statement of the problem

 

1.3 Purpose/objectives of the study

 

1.4 Research questions

 

1.5 Research hypothesis

 

1.6 Scope, Limitations of the study

 

1.7 Definition of terms

 

CHAPTER TWO

 

REVIEW OF RELATED LITERATURE

 

2.1 Definition of cost accounting

 

2.2 Features of cost accounting

 

2.3 Principles of cost accounting

 

2.4 Definition and types of costing techniques

 

2.5 The role of cost accounting

 

2.6 Problems of costing techniques

 

2.7 Remedies of costing techniques

 

CHAPTER THREE

 

3.0     RESEARCH DESIGN AND METHODOLOGY

 

3.1 Research design

 

3.2 Area of study

 

3.3 Research population

 

3.4 Sample and sampling techniques

 

3.5 Instruments of data collection

 

3.6 Methods of data presentation

 

3.7 Method of data analysis

 

CHAPTER FOUR

 

 

 

4.0  DATA PRESENTATION AND ANALYSIS

 

4.1     Data presentation and analysis

 

4.2  Test of hypothesis

 

CHAPTER FIVE

 

5.0 SUMMARY, CONCLUSION AND RECOMMENDATION

 

5.1 Summary

 

5.2 Conclusion

 

5.3  Recommendation

 

Bibliography

 

Questionnaire

 

CHAPTER ONE

 

INTRODUCTION

 

1.1     BACKGROUND OF THE STUDY

 

The services oriented organizations are the foundations of industrialization of any nation. Since the introduction of money, people have been concerned with cost. They think of how to manage money. Costing system was first recognized in manufacturing industries with the aim of finding the cost of production or cost of a product, presently, the system is used very widely in other establishments such as transport companies, schools, governmental organizations, hospitals, banks, etc. these examples includes both profit making and non-profit making organizations. The profit making organizations main aim of adopting costing system may be to determine the cost of their products or services among others. The main aim of adopting the system by non-profit making organizations like government offices is to determine the cost of their operations and e cost of carrying on their activities such as the cost of buying stationery for their office work.

 

Costing system is also applied in house holds. A housewife will list items to be bought from the market and cost them before going to the market. The analysis will help her to know the amount she will take to the market. Costing system is important and is applied in our day to day activities.

 

It is also known that costing is the act of analyzing, classifying, collecting and accumulating past costs using standard methods, while costing techniques are the ways or dimensions of generating a variety of information from cost data for management decision making, there are different types of costing techniques: these includes: standard costing, marginal costing, absorption costing, uniform costing  and cash flow analysis. The management determine their use by calling for such information. Looking at al these, the writer strongly believe that the costing techniques mentioned above can lead on firm through the hers economic situations.

 

Cost accounting was introduced to avoid the shortcoming of the financial accounting. It is only to avoid the possible losses arising from the mis handling of the financial data. Cost accounting also attempts to assist the management by reporting the operating result at regular intervals at different levels of activities. It has also to meisue the responsibility of the actual performance against planned performance.

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