CHAPTER ONE

INTRODUCTION 

This project is talking about cost control system in the Nigeria manufacturing industry. It states how cost is essential in manufacturing and the way to utilize material in order to save cost and gives maximum profit to the shareholders.

The effective cost control system should aid and continuity of nay manufacturing. If this cost can be well contributed, the manufacturing should have very high turnover all over the country and good name as well.

1.1       Background of the Study

Basically, behind the set up of every business is profit motive and behind its continuity is increase in turnover and profit. It is the profit motive that drives shareholders into investing their capital. It is the profit motive that leads into goods and services being produced and it is the profit earned that ensures the continuity, existence and growth of the business. 

It should, however be noted that there can be huge profit without cost reduction and proper cost control even high turnover.  

The manufacturing companies that have efficient and effective systems of cost of control as an essential factor in improving or reducing the cost of production in order to maximize profit are very few.

An efficient system of cost control is one essential factor for industry control under modern condition of business and as such may be regarded as an important part in the effort of any organization and management to secure business stability and maximized of profit.

Though the method of achieving this singular aim of maximized profit vary from one origination to the other due to the fact that organization differ in scope and operation, the activities of the organization so that the organization can gain its achievements.