BACKGROUND OF THE STUDY The preponderance of vast number of small scale industries in Nigeria suggest that the situation offers substantial opportunity for the intensive development and improvement of this sector, with appropriate injections of technology, improved management, efficient marketing techniques and so forth (Echu, 2002). The contributions of small industries to development are generally acknowledged. Small industries face many obstacles that limit their long term performance and invariably their development and growth. Some of the causes of failure have been traced to poor management and lack of knowledge of proper accounting system employed by these industries (Akande, 2011). Manufacturers employ various system of accounting which requires a timely, relevant and accurate measure of cost, resources consumed in manufacturing their product and managerial decision making. Since the system of accounting used by industries is one of the key things that determine industrial growth and profitability, they must make use of a system of accounting which will enable them determine the volume of sales, cost of product and profitability at any given time (Okoli, 2011). Despite these efforts, most small scale industries in Nigeria still fail mostly because of lack of sound professional principle that is capable of providing information on the activities and decision process of the industry. Small scale industries cannot boast of professional Cost Accountants capable of providing cost accounting information on the activities and decision process of the industry. It is recognised that appropriate cost accounting information is important for successful management of an industry whether it is large or small (European Commission-Enterp... ... middle of paper ... ...raining for Small Business. Journal of European Industrial Training Vol.2 , 17. Lucey, T. (1996). Costing (5th Edition). London W12 8AW: Letts Educational Aldine Place. Magbabeola, J. O., Magbagbeola, E. O., & Adetoso, J. A. (2010). Application of Operations Research Tools to Aid Performance Growth of Small Scale Industry in National Development in Sub-Saharan Africa: Case Study of Nigeria. Continental Journal for Social Sciences . Mills, S., & Kleiner, B. H. (1992). Accounting to Enhance Organisational Productivity. Journal of Industrial Management & Data Systems Vol.92(4) . Okoli, B. E. (2011). Evaluation of the Accounting Systems used by Small Scale Enterprises in Nigeria. Asian Journal of Business Management Vol.3(4) . The Institute of Company Secretaries of India. (2013). Cost and Management Accounting. Dwarka, New Delhi: Delhi Computer Services.
Management accounting in organisation is very important for decision-making and to make the business more efficient and therefore increasing its profits. Is the process of preparing accounts that can help managers to make day-to-day and short-term decisions, by providing them with accurate and timely key financial and statistical information...
One must understand that the integral core of a company rests in its accounting and financial areas. The departments’ need employees with an advanced knowledge and skill set to ensure the payment of supplies and accounting on the expenditure is correctly recorded. If the accounting desk presents inaccurate spending calculations on behalf of the company, it could result in spending more than what has actually been earned; this could lead to the company not only being unable to increase in revenue, but also experience loss. It is imperative that the management of the financial department is well informed and able to make decisions by taking into account the usage of every coin stated in the expenditures, and also to know the amount of revenue the company is making so that we can plan on better strategies to improve the revenues (Lu, Madu, Kuei & Winokur, 1994).
Before venturing into performance investigation of a small enterprise, one must understand what is the scope and hardships faced by a small enterprise in the UK. Small companies are the big contributors to the economy of the UK. There are around five million small businesses in the UK, which is approximately more than 50% of the economy. (Rich, 2016) The enterprise must work in the right direction at a right pace to stand out from the rest of the business units. The management in an enterprise must know the strengths and weaknesses of the business enterprise to drive it through the thick and thin in the market.
"College Accounting Coach." Process Costing-Definitions And Features(Part1) « Process Costing « Cost Accounting «. Feb. 2007. Web
It is a little known fact that small businesses make up a major factor of the American workforce. Since the word small is in the title most people think nothing of them, but when one takes the time to think that there are millions of small businesses, most with at least two to ten workers, the amount of people begins to add up. There are many factors that could contribute to a business failing, and it happens all the time in America. Small businesses must have solid business plans, a good use of technology, appealing merchandise, and appropriate financing to survive and prosper in the economy.
In this paper, I’m going to be telling you the difference between a Small business and a corporation. These two have a lot in compared and a lot of difference. There are a lot of small business and corporation growing fast throughout the world. Both businesses take a lot to manage and you also must have the skill and the ability to do so. If it was easy, everybody would have some type of business growing in this world
Others feel that ABC would be more widespread in industry if it were marketed better by the cost accounting profession itself [1]. As the dust has settled, ABC has turned out to be less a revolutionary technique than a useful refinement to proven systems. The costs of products and services must be accurate, or management can be misled. Decisions... ...
Moreover, SME’s are generally seen to be the gem for indigenous entrepreneurship and generate many small investments, which otherwise would not have taken place. Therefore, Ghana needs to further facilitate and promote the growth and development of its private sector; as the accepted engine of growth. This can be done through creating a congenial and convivial environment that is favorable to the growth of SMEs by strengthening the factors that promote the growth and expansion of businesses and through resolving the critical problems threatening the existence and advancement of SME’s (Chu, Kara & Benzing, 2008).
Okoli (2011) Link keeping proper records for the benefit of small enterprises in Nigeria and argues that the lack of proper record keeping made it impossible for small business owners to make critical evaluation of their performance
Small and medium enterprise (SME’s) have very important role in the economy. Their contribution in increase in production, employment, number, and exports over a period of time is tremendous. The role of SME sector in the overall nation building is well recognized across the globe.
Growth in the small and medium business in Canada and other developed countries has been very significant. This sector of the business community now represents about 40 percent of GDP and accounts more than half of total employment. Today small businesses are more diverse and more vigorous than ever, but they also faces newer and more challenges or inhibitors to their growth than their older conter parts. This research will attempt to find the answer to the following hypothetical question:
The importance of responsibility accounting is that it’s essential to very large organizations, but extremely advantageous as well for small to medium sized (SMB) businesses in general, because this method of accounting allows a business to explain whose, what, when, where and why, and justify if necessary, money is invested and spent concerning a company’s finances. There is also the aspect of better management through collection of pertinent data and reporting of this data from each individual department within larger organizations. There are many examples of companies that today use responsibility accounting principles.
Small businesses have been considered the mainstay in countries around the world. In many European countries for example, the small business has been considered crucial to the success and flourishment of the country in general. Most individuals start upon a small business venture in the hopes of realizing ownership, independent profits and personal success. Small businesses can prove extremely successful when planned properly. Studies suggest that several small businesses, however, close or fail within the first few years of operation. This failure suggests that a majority of small business owners may not have as yet realized the crucial success factors necessary for successful implementation of a small business.
Osagbemi (1981) assets that the major factors responsible for small business failure includes lack of luck, insufficient money, insufficient preparation, lack of business connections, low level of business education, lack of experience, poor health, lack of managerial ability etc.
There are various definitions of smaller enterprises provided from different times and areas. One of the earliest definitions was provided by Bolton Report (1971), which has indicated that a small enterprise should meet three criteria: independent (not part of a larger enterprise); managed in a personalized manner(simple management structure); relatively small share of the market(the enterprise is a price ‘taker’ rather than price ‘maker’). There are also quantitative definition of the smaller enterprise in terms of measurement of the assets, turnover, profitability and employment from different sectors and countries (Bolton, 1971).