IMPACT OF INVENTORY MANAGEMENT ON FINANCIAL PERFORMANCE OF MANUFACTURING INDUSTRY (A CASE STUDY OF TUYIL PHARMACEUTICAL INDUSTRY,ILORIN)

ABSTRACT The topic of this research is IMPACT OF INVENTORY MANAGEMENT ON FINANCIAL PERFORMANCE OF MANUFACTURING INDUSTRY (A CASE STUDY OF TUYIL PHARMACEUTICAL INDUSTRY,ILORIN) The purpose of this study was to discover if the application of standard costing techniques have effect on efficiency , to explore the relationship between standard costing and profitability of manufacturing companies and also to determine whether standard costing techniques and principles are being adopted and practiced in Nigeria manufacturing companies (Nigeria breweries plc). The design of this study is descriptive survey method and scope of this study was restricted to Nigeria breweries plc Alakia Ibadan. Self administered questionnaire was adopted to collect data from the respondents to ensure the reliability of the data which was analyzed using frequency table and chi-square. It is discovered that proper accounting records are kept and are significantly necessary in the management of the company, the company employed standard costing in costing information obtained in the company. The accounting reports were prepared and presented to the company management and that action were taken promptly on the information given in the report. It is also discovered that effective application of standard costing has effect on profitability of the company as a manufacturing firm, the company benefited in a significant way through the use of standard costing especially in the improvement of profitability. In conclusion, standard costing was widely used in manufacturing companies and also standard Costing enhanced manufacturing companies in the identification and elimination of unprofitable products, provision of costing information and cost control techniques.