Document Type : Case Study


1 Department of Accounting, Federal Neuro Psychiatric Hospital, Kaduna State, Nigeria

2 Former Head of Training and Research, Federal Neuro Psychiatric Hospital, Kaduna State, Nigeria


The purpose of this research paper is to examine the importance of cost control and the various cost control method used and their impact on the survival of Nigeria firms. We used primary and secondary data sources. The primary data were obtained using a structure questionnaire which was administered to 30 randomly selected staff as well as discussion with some targeted staff of Nigeria Bottling Company Plc (NBC) Jos plant, Plateau State of Nigeria. The scoring on the questionnaire was done using a five point Likert scale. The secondary data sources comprised of journal articles, books, newspaper articles, company financial reports and internet. The student t-test statistic and comparative percentage were used to test the hypothesis and the significance level was α=0.05. This research discovered that 70% of the respondents were of the view that cost control has greatly helped in boosting profitability in the company and 13.3% were undecided while 16.7% disagreed. Seventy nine percent of those discussed with, strongly agree that cost management has boost the profitability of the company while 7% disagree and 14% undecided. The study revealed that the problem of manufacturing company is the high cost of overhead incurred in the company. These costs are getting out of what the company could bear. The paper recommended that mechanisms for conducting value analysis (incorporating value engineering) should be put in place on a permanent basis; a good budgeting process should also be put in place to control cost; Just – in – Time (JIT) techniques should be employed to meet production and sales requirement in Nigeria Bottling Company Plc.


Abdulaye, B (2006), International monetary fund development with Nigeria gross domestic project. The punch newspaper, Tuesday, May 2, 2006. Vol, 17.
Adam, A.J (2005), Public policy and industrialization in Nigeria publication of central bank of Nigeria. Vol. 29, No2. April – June, 2005
Adeniyi A.A, (2008), An insight into: Management Accounting, 4th Edition: El- Toda Ventures Limited.
Agara I.G, (2005), Management Accounting: Effective managerial tool: Igaman Nigeria Publishing, Abuja, Nigeria.
Ayodele E.O, Alabi M.O, (2014), Effect of cost control on building projects delivery in Nigeria: Civil and environment research, ISSN 2224-5790 (paper) ISSN 2225-0514 (online), Vol 6, No 2, 2014.
Barbole A.N, Yuvraj D.N, Santosh.D.P, (2013), Impact of cost control and cost reduction techniques on manufacturing sector; Indian streams research journal, vol 3, issue. 5, june 2013. ISSN:-2230-7850.
Berliner C, (1998), Cost management for today’s advanced manufacturing: The CAM-I conceptual design. Boston: Harvard business school press.
Cochran, W. G. (1963). Sampling Techniques, 2nd Ed., New York: John Wiley and Sons, Inc.
Drury C, (2004), Management and cost accounting, 6th edition: London: Book power (ELST)
Emengini S.E, Ezuwore O.C, Ofoegbu G, (2014), Product cost management in development countries: Activity – based costing: Research journal of finance and accounting. ISSN 2222-1697(paper) ISSN 2222-2847(online), Vol 5, No 2, 2014.
Horngren C.T, Foster G, Datar S.M. (2002), Tenth Edition Cost accounting; A managerial emphasis: Prentice-hall of India. Private limited. New Delhi.
I.C.A.N, (2009), Institute of chartered accountant of Nigeria, management accounting study pack, 2009:  IV publisher, lagos state, Nigeria.
Idufueko, A.O, (2006), Partnering for enhanced success of needs: The reviews and role of the private sector in Nigeria. The punch news paper, Monday 8, page 20.
Oyewo B.M, (2013), Strategic cost management as a recession survival tool in the Nigerian manufacturing and financial service industries: Research journal of finance and accounting, ISSN 2222-1697(paper) ISSN 2222-2847(online), Vol 4, No 11, 2013.