Cost Control and Its Impact on the Survival of Nigeria Firms: A Case Study of Nigeria Bottling Company Plc.

The purpose of this research paper is to examine the importance of costcontrol and the various cost control method used and their impact on thesurvival of Nigeria firms. We used primary and secondary data sources. Theprimary data were obtained using a structure questionnaire which wasadministered to 30 randomly selected staff as well as discussion with sometargeted staff of Nigeria Bottling Company Plc (NBC) Jos plant, Plateau Stateof Nigeria. The scoring on the questionnaire was done using a five point Likertscale. The secondary data sources comprised of journal articles, books,newspaper articles, company financial reports and internet. The student t-teststatistic and comparative percentage were used to test the hypothesis and thesignificance level was α=0.05. This research discovered that 70% of therespondents were of the view that cost control has greatly helped in boostingprofitability in the company and 13.3% were undecided while 16.7%disagreed. Seventy nine percent of those discussed with, strongly agree thatcost management has boost the profitability of the company while 7% disagreeand 14% undecided. The study revealed that the problem of manufacturingcompany is the high cost of overhead incurred in the company. These costs aregetting out of what the company could bear. The paper recommended thatmechanisms for conducting value analysis (incorporating value engineering)should be put in place on a permanent basis; a good budgeting process shouldalso be put in place to control cost; Just – in – Time (JIT) techniques should beemployed to meet production and sales requirement in Nigeria BottlingCompany Plc.

Cost Control and Its Impact on the Survival of Nigeria Firms: A Case Study of Nigeria Bottling Company Plc. Keywords:

Cost control , survival , and profitability , value analysis , budgeting and Nigeria firm