Assessment of cast Management Practice Manufacturing Complains (The Case of Awash Wine Share) Company

Abstract

In modern business conditions, the costs are crucial factor for business activity, survival and profitability. As a result most of companies focus on cost management for their success in business. This study examines cost management practices in reducing and controlling of manufacturing costs of Awash wine share company. In doing this descriptive case study research design, mixed research approaches were used. Data were collected from 40 Awash Wine share company employees. The study relied on primary data collected using interview and questionnaires and secondary data collected from documents and reports of the company. The collected data analyzed with descriptive statistics such as frequencies, percentages, mean and standard deviation through statistical tool SPSS. The data presented in tables, charts, and figure. The study found Awash wine do not widely use cost management tools and technic like Budgetary control, Standard cost control and setting standards in the organization to control and reducing manufacturing cost, Awash wine S.C uses Traditional costing method. It also revealed that middle level employees didn’t participate in budget preparation of the organization. It also discovered that Awash Winer can reduce costs and maintain quality products by the use of effective cost control and reduction tools and techniques such as budgetary control, standard costing, quality control and target costing. The study recommends that Awash Winner cost management system need to be designed to help the company’s operation and strategy and should provide reliable targets for managerial attention, the importance of cost management tools and technic to control and reducing manufacturing cost and to measure the performance of the organization need to considered, Awash wine SC should use target costing techniques as a means to reduce its product cost and become competitive in the industry. Should make a major shift from traditional costing method which may provide information that is distorted, too exaggerated, and too late to be used in reducing cost or providing productivity and market projection, The participation of middle level employee in budget preparation of the organization needs to be encouraged this can be through skilling the employees on cost and cost management issues. Furthermore, Awash wine S. C’s top management need to watch regularly cost management system to control and reduce manufacturing cost elements to become profitable