EFFECT OF STANDARD COSTING ON THE PROFITABILITY OF MANUFACTURING COMPANY: A STUDY OF P.Z CUSSIONS NIGERIA PLC, ABA

ABSTRACT 5 The paper is aimed at examining the effects of standing costing on the profitability of manufacturing companies to discovering if the application of standard costing techniques have any effect on profitability, to explore the relationship between standard costing and the profitability of manufacturing companies and determining whether standard costing and principles are being adopted and practiced by Nigeria Manufacturing company. The design of this paper is stratified probability sampling techniques and the paper was conducted at P.Z Cussons Plc, Aba, Abia State which is the case study of this paper work. The instrument of data collection was analyzed using the chi-square method. Data were collected for the study using questionnaire. The data collected were analyzed, tabulated and presented, using simple percentages. The hypotheses were tested using normal distribution stastical tool at a = 0.05 significant level and population, N = 100 staff of the Accounting Unit and the management staff. The sample size n= 80 was determined by systematic random sampling. The Chi-square (X2) value and calculated and the results compared with the critical X2 were higher, thus accepting the alternative hypothesis and rejecting the null hypothesis. The following were discovered findings show that accounting records are kept and are significantly necessary in the management of the company. That accounting reports are prepared and presented to the company’s management and that actions are taken promptly on the information given in the report