ABSTRACT

This research work was necessitated by the need to highlight, the cost accounting and control problems inherent in the agricultural sector and Nigeria economy with particular reference is the production and animal fees and concentrates.  This is with view of efficiency and the achievement of organization goals.

The stuffy was done to ascertain whether enough cost accounting information is being generated for managerial purposes by Livestock Feed Plc.  To identify the cost accounting techniques adopted by the company, investigate whether line management are deeply involved in setting standards frequently reviewed to meet the requirement of current situations.  On the basis of the above, related literature was viewed to ascertain other writers view concerning cost accounting and control as it related to production of goods.

Against this background, invaluable and reliable discoveries were made.  It was found out that the cost accounting techniques of standard costing is adopted by the company and there is absence of attainable standards line managers and specialists (such as accountants, engineers etc) are not deeply involved in setting standard cost of production.

Also, standards are not reviewed in semi-annually to accommodate current circumstances just as favourable variances is not indicated.

CHAPTER ONE                                      

1.0            INTRODUCTION:

The importance of the agricultural sector in Nigeria economy is generally well known.  The most public policy makers especially since independence in 1960, has expected the sector to satisfy the bulk, if not all, the food requirement of the country supply.  Most of the agricultural raw material needed by the manufacturing sector, provide adequate employment and income to the farmers and investors as well as earn substantial foreign exchange for the country.

Olieh (1984) shared the same view, before independence said “Agricultural products formed the major component of the country’s export.  The livestock subsector is supposed to provide high quality rich in protein products.

Ukpong (1993) conclude that the livestock sub-sector in Nigeria has been depressed for many years and its output declined by about 18.2 and 4.4% in 1982 and 1983.  There is high cost of finished feeds, low value of naira needed or import of raw material and equipment, also government neglect and abandonment of the sector has led the nation to economic stagnation.  The cost control will be used as a case study, since it has a great role to play in the production of animal feeds and concentrates in Nigeria.

1.1     BACKGROUND OF STUDY:

Livestock Feeds Plc was incorporated in 1953.  The company’s principle activity is the manufacture and marketing of animal feeds and concentrates.

In other words, the company is basically engaged in poultry farm business, production of finished feeds for birds.

1.2            OBJECTIVE OF THE STUDY:

The cost accounting and control problems inherent in the production of finished fees of livestock feeds Plc.  These objectives will enable the sector to return to the part of growth and profitability.

1.                 To know whether enough cost accounting information is generated by Livestock Feeds Plc.

2.                 To identify the cost control techniques adopted in the company.

3.                 To investigate whether line managers are involved in setting standard cost of production.

4.                 To ascertain whether standard cost are frequently reviewed by the company.

1.3            THE SCOPE AND LIMITATION OF THE STUDY:

The study will be centered on cost control problems inherent in the agricultural sector of the Nigerian economy with particular reference to the production of finished feeds for livestock.  The researcher does not intend to cover such areas as farming and animal rearing.

This is considered in a limitation, since the death of the researchers could lead to the death of the research.  Other limitation could be time, money.  Also absence of willingness on the part of some individuals within the organization to provide information on some operation of the company inhabited the progress of the research.

However, the presence of these difficulties, the researcher was able to do great job, which can be validity relied on by any interested party.

1.4. STATEMENT OF HYPOTHESIS

1. Hi   cost accounting and control  is as a result of effective internal control.

Ho  cost accounting and control is not as a result of effective internal control.

2. Ho  prudent allocation and fraud elimination are not as a result of effective cost accounting and control system in the agricultural sector

Hi  prudent allocation and fraud elimination are as a result of effective cost accounting and control system in the agricultural sector.

3. Ho:- Cost accounting and control  is not necessary in Livestock feeds Ltd.

Hi: Cost accounting and control  is necessary in Livestock feeds Ltd.

1.5.         DEFINITION OF TERMS:

ANIMAL FEEDS:

This means the various productions produced by the company such as finisher, starter and grower mash.  It is also referred to finished feeds.

AGRICULTURE:

This is taken to mean the production feeds for birds and concentrates.

MARGINAL COSTING:

This is a costing method whereby only variable manufacturing costs are allocated to produces and included in the stock valuation.

DECENTRALISED BUDGETING:

This is a process of budgeting whereby the various units are allowed fully participation as regards in budgeting.

SYSTEM:

This is a recognizable whole made of components parts (departments) that works together to achieve a common goal.

CENTRALISED BUDGETING:

This means a budgeting system whereby the budgets are prepared by the head office and gives to the plants of divisions within the organization to implement with little participation from units.

1.6     LIMITATION OF THE STUDY

The scope of study is limited to the Livestock feeds plc .  The study will look into cost accounting and control in the agricultural sector and find ways of achieving it where none exists.  There will be attempt to evaluate the effectiveness and efficiency of the internal control system on the agricultural sector with reference to Livestock feeds plc . The investigation will highlight the impact of the company audit department and public accounts counted on the process. constrained of finance and time which would have given me enough opportunity to incorporate a lot of applications and to perform series of test runs.

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