Cost Management Strategies and Profitability of Quoted Cement Manufacturing Firms in Nigeria

• Author(s): Aniefiok Gilead ROBINSON ; Usen Paul UMO
• Paper ID: 1705048
• Page: 168-191
• Published Date: 16-09-2023
• Published In: Iconic Research And Engineering Journals
• Publisher: IRE Journals
• e-ISSN: 2456-8880
• Volume/Issue: Volume 7 Issue 3 September-2023

Abstract

Cost management strategies are considered as useful means of increasing revenue for the successful operations of manufacturing firms in which cement manufacturing companies are inclusive. The study examined the relationship between cost management strategies and profitability of quoted cement manufacturing firms in Nigeria. It used ex post facto research design with three quoted cement manufacturing firms as population of the study based on the years 2013-2022. Content analysis research method was adopted. The findings of this study were; Throughput costing (x1), lifecycle costing (x2), target costing (x3) and activity based costing (x4) strategies have positive relationship with the return on equity of quoted cement manufacturing firms with correlation coefficient: Rx1 = 0.090; Rx2 = 0.119, Rx3 = 0.429 and Rx4 = 0.438 respectively. Based on the findings of the study, it was concluded that target, lifecycle, throughput and activity based costing have a combined positive relationship with the return on equity of quoted cement manufacturing companies in Nigeria. But specifically, throughput accounting has weak and insignificant positive relationship. The researcher recommended that firms should confine the output to the extent of customers’ demand to locate approaches of raising customers demand to a higher level. Cement firms should exercise the inputs of specialists within and outside the organisation in pursuit of economic life-cycle cost and profitability determination of products. Firms should facilitate the identification of how individual customer influences the cost of supply so as to provide the business with better information to make value-based and more effective decisions.

Keywords

Target, Lifecycle, Throughput, Profitability and Activity Based Costing

Citations

IRE Journals:
Aniefiok Gilead ROBINSON , Usen Paul UMO "Cost Management Strategies and Profitability of Quoted Cement Manufacturing Firms in Nigeria" Iconic Research And Engineering Journals Volume 7 Issue 3 2023 Page 168-191

IEEE:
Aniefiok Gilead ROBINSON , Usen Paul UMO "Cost Management Strategies and Profitability of Quoted Cement Manufacturing Firms in Nigeria" Iconic Research And Engineering Journals, 7(3)