The Role of Cost Accountants in Small Scale Manufacturing Industries in Nigeria

1252 Words3 Pages

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.

More about The Role of Cost Accountants in Small Scale Manufacturing Industries in Nigeria

Open Document