ASSESMENT OF COST MANAGEMENT PRACTICE AND CHALLENGES IN THE CASE OF YIBELU MOSSIWA FREIGHT TRANSPORT

Abstract

This study assesses the cost management practices and challenges faced by Yibelu Mossiewa Private Freight Transport, located in Lideta Sub-city, Woreda 9, Addis Ababa, Ethiopia. The research aims to evaluate the company's approach to controlling operational costs and identify the challenges limiting its efficiency and profitability. A mixed-method research design was employed, incorporating quantitative data collected through financial records and qualitative insights from structured interviews with management and staff. The findings reveal that while the company has basic cost management systems; these are largely informal and lack strategic planning. Key challenges include rising fuel prices, inadequate record-keeping, limited expertise in cost management, and external factors such as regulatory changes. These issues significantly hinder the company’s operational efficiency and financial performance.The study concludes that adopting structured cost management practices, such as automated accounting systems, regular cost analysis, and capacity-building programs, could improve efficiency and sustainability. Major recommendations include investing in staff training, leveraging technology for cost control, and establishing long-term financial planning strategies to address external uncertainties.