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MARGINAL COSTING AS AN ESSENTIAL TOOL FOR DECISION MAKING IN A MANUFACTURING COMPANY (CASE STUDY OF ANAMMCO ENUGU)

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ect Topic:
MARGINAL AS AN ESSENTIAL TOOL FOR DECISION MAKING IN A MANUFACTURING COMPANY (CASE STUDY OF ANAMMCO ENUGU)

CHAPTER ONE

1.                 

1.1     BACKGROUND OF STUDY

          The reality of modern business management in a free enterprises economic system in the level of competition among all enterprises where only the fittest enterprise survive.  The motive for maximization of profit in business and quest for wealth creation being in Hogue, management continues to remain under increasing obligation to improve its share of market, its assets, its credit worldliness and its overall potential.

          These in turn require an improvement in the quality of decision therefore in order to responds effectively to the challenges of time, management requires good factors in business decisions.  The research work is a real attempt to investigate into the principle and practice of marginal costing as an essential tool for decision making in companies using Anambra Motor turing Companies (ANAMMCO) as a case study.  The study will critically examine the following:-

1.                  The condition for analyzing cost into fixed and variable components.

1.                  How the cost are normally controlled

1.                  And how management decision is ended under the techniques

An is necessary in order to determine effectiveness and efficiency of the management accounting technique.  In carrying out this research work, data was gotten from questionnaire, information and of data using the percentage method to analyze the responses elicited from respondents.  Also the personal observation method were used together with relevant information from libraries.

BRIEF HISTORY OF ANAMMCO

          Against the background of rapid economic growth, the federal military government in 1975 was faced with the enormous task of developing the country’s infrastructure from one geared towards farming to one oriented towards mechanized agriculture and industry.

          The Anambra Motor turing Company is the result of the economic and technological co-operation between the government and the people of Nigeria and DAIMLER – BENZ of the West Germany.

          The company is located at Emene Industrial Layout Enugu.  The site covers an area measuring over 300,000 square meter generously leased by the state government.

Although the partnership agreement was signed in 1975.  The company was incorporated in Nigeria on the 19th of January 1977 under the name of Anambra Motor turing Company, as a private limited liability company with an authorized share capital of N7,000,000 ordinary share of N1.00 each all of which were issued and fully paid up.

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