Accounting Project Topics

Costing Techniques, Its Impact on the Profitability of Manufacturing Company

Costing Techniques, Its Impact on the Profitability of Manufacturing Company


Chapter One of Costing Techniques, Its Impact on the Profitability of Manufacturing Company



Profit maximization is the fundamental task of management of a company that is established solely for project making. And management needs relevant and adequate information that will aid them planning: coordinating and decision making in order to maximize cost and maximize profit. Based on these, certain techniques and procedures are applied in order to have corporative analysis about “cost” both directly and indirectly engaged in the manufacturing service.

According to Oxford Dictionary of Accounting (3rd Edition (2005), costing techniques are techniques and procedures used cost accounting and management accounting to obtain the cost of service, products, processes and cost centre to provide the information required to undertake performance measures, decision making, planning and control. Costing techniques is also termed as a technique of costing which is designed to suit the way goods are processed or manufactured or the way goods are provides. Lucey T. (2002), He noted that each firm will use costing techniques as a unique feature and will suit the company.

Based on the above definitions of costing techniques an organization will yield increase in profit of they applied the costing technique at where it is deemed appropriate’ At this point, the research is to examine costing techniques as being applied in champion Breweries PLC, Uyo to see the impact it has created in profitability of the organization.


The problem is how management is efficient in the performance of its functions such as planning, organizing, directing and controlling in order to attain its key objective is profit maximization it needs a whole lot of relevant data concerning the costs associated with the manufacturing process. The use of costing techniques for management decision is one of the phenomena which has continually aroused concern in the mined of management of years. Most business organization does not keep reliable records of transactions, capable of guiding management decision making.


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The purpose of the study is how costing technique help to increase profit of an organization with emphasis on Champion Breweries PLC, UYo.


The objectives of the study are to find out the following:

  • To examine the impact of costing technique on the profitability of an organization.
  • To find out the problem associated with the application of costing techniques of an organization.
  • To find out the most appropriate costing technique to be adopted by an organization.
  • To make useful recommendation base on research finding.
  • To indicate whether the cost of certain articles or components made in the organization would be more economical.


  1. How costing techniques does aids in the profitability of an organization?
  2. Does costing techniques help in the ascertainment of costs of specified thing?
  • Which of the costing is deemed appropriate to applied in an organization?
  1. How can an organization maintain and effective and efficient costing techniques system?
  2. What is the problem associated with costing techniques in the manufacturing company.



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