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    Application of Marginal Costing Techniques in Management Decision Making in Nestle Food PLC

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    Sefiager Markos
    This research assessed the application of marginal costing techniques in management decision making at Nestle Food Plc. The study aimed to show the importance of marginal costing as a short-term planning and decision making tool, and determine the appropriate format for presenting marginal costing information to management. Data was collected through questionnaires and publications, and analyzed using SPSS, percentages, and ANOVA. The study established that marginal costing is key for accountants and ascertaining its contribution to high quality decision making. It recommends that accountants identify relevant costs and provide management with information on cost and revenue effects of output changes in the short run.

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    Application of Marginal Costing Techniques in Management Decision Making in Nestle Food PLC

    Uploaded by

    Sefiager Markos
    246 views2 pages
    This research assessed the application of marginal costing techniques in management decision making at Nestle Food Plc. The study aimed to show the importance of marginal costing as a short-term planning and decision making tool, and determine the appropriate format for presenting marginal costing information to management. Data was collected through questionnaires and publications, and analyzed using SPSS, percentages, and ANOVA. The study established that marginal costing is key for accountants and ascertaining its contribution to high quality decision making. It recommends that accountants identify relevant costs and provide management with information on cost and revenue effects of output changes in the short run.

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    Application of Marginal Costing Techniques in Management Decision Making in Nestle Food Plc

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    This research assessed the application of marginal costing techniques in management decision making at Nestle Food Plc. The study aimed to show the importance of marginal costing as a short-term planning and decision making tool, and determine the appropriate format for presenting marginal costing information to management. Data was collected through questionnaires and publications, and analyzed using SPSS, percentages, and ANOVA. The study established that marginal costing is key for accountants and ascertaining its contribution to high quality decision making. It recommends that accountants identify relevant costs and provide management with information on cost and revenue effects of output changes in the short run.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    246 views2 pages

    Application of Marginal Costing Techniques in Management Decision Making in Nestle Food PLC

    Uploaded by

    Sefiager Markos
    This research assessed the application of marginal costing techniques in management decision making at Nestle Food Plc. The study aimed to show the importance of marginal costing as a short-term planning and decision making tool, and determine the appropriate format for presenting marginal costing information to management. Data was collected through questionnaires and publications, and analyzed using SPSS, percentages, and ANOVA. The study established that marginal costing is key for accountants and ascertaining its contribution to high quality decision making. It recommends that accountants identify relevant costs and provide management with information on cost and revenue effects of output changes in the short run.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    of 2

    APPLICATION OF MARGINAL COSTING TECHNIQUES IN MANAGEMENT

    DECISION MAKING IN NESTLE FOOD PLC


    This research work was undertaken to assess  the concept and application of marginal
    costing techniques in management decision making reference to Nestle Food Plc. This
    work was intended to achieve the following objectives:  Showing the importance of
    marginal costing as a tool for planning and short term decision making and to
    ascertaining the format to be used on presenting marginal costing information by
    management  accountants to the management. Relevant data were collected from both
    primary and secondary sources. Questionnaire was the main primary data collected
    instrument employed while data from various relevant publications constituted the
    sources of secondary data. Upon the analysis of data the (SPSS) along with percentage
    mean item was used to analyze the questionnaires while ANOVA was used to test the
    hypothesis. The study established that the marginal costing technique is the key aspects
    of the Accountant’s job. The management Accountant ascertain whether the technique
    contributes to high quality decision making which will help him in reporting on magical
    casting techniques to Nigerian Nestle Food Plc, and the extent to which reliance can be
    placed on the technique. The overall objective of any organization is to maximize profit
    and hence increase in wealth of its shareholders. Based on the finding and conclusion
    arrived, it recommend that practicing management accountant should identify relevant
    cost and provide information to management on the effect of costs and revenues of
    charges in volume of output in the short run and Fixed cost should not be absorbed into
    product cost along with variable cost rather they should be treat as period cost which are
    simply charged to profit with fixed selling and administrative cost during that period by
    the management.
    Purpose of the study

    1. Showing the importance of marginal costing as a tool for planning and short term
    decision making.
    2. Ascertaining the format to be used on presenting marginal costing information by
    management Accountants to the management.
    3. Evaluating the extent to which marginal costing can be used for pricing method.
    4. Examining whether marginal costing has helped the management to achieve high
    profitability level.
    5. Ascertaining the relevant costs to be used in marginal costing computation

    Limitation of the study


    This study could have been extended to cover as many companies in order to allow for
    more representations but due to time and financial constraints this study will be limited to
    the activities for Nestle Food Plc.

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