AN ASSESSMENT OF COST MANAGEMENT PRACTICE: IN THE CASE OF OK BOTTLLING & BEVERAGE S.C.

Abstract

The study was aimed to assess the cost management practice of Ok Bottling & Beverage S.C. The researchers used a descriptive research design. The sample size of the study consists of 18 employees of the company, using self- administered questionnaire & interviews with selected accountants of the finance department & other department staffs. The study relied on primary data. The data received were analyzed by using descriptive statistical method of analysis and statement type of presentation, in which table and percentage was the major tools of presentation. The major findings of the study are as follows: The most important area where the const information is used for budget determination, investment plan & performance evaluation, the company’s cost department hasn’t adequate staff members. The most widely used product costing method is process costing & the technique used is Activity-Based costing method; the most widely used overhead allocation is unit produced. The finding indicates that the company use budgetary control & quality cost control as cost reduction & control tool. The study recommends that the company should understand the importance of employees’ involvement & responsibility for the productivity & effectiveness of the company. It also recommends that the company should prepare & use accenting manual & policy and in time of need give cost information for external users.