Abstract:
This research work aims at examining the role which costing plays in
materials management with a view to identifying the extent or the efficacy of
J its application in quote manufacturing firms in Nigeria. To do this, survey method of research was utilized in carrying out the study. Both primary and secondary sources of data were used in gathering relevant information. The primary sources consist of the questionnaire andoral interview while the secondary data were gathered from existing
literature on the subject matter of the study. For analytical reasons, the number of the sampled firms were bifurcated into high profit/earning ratio and low profit/earning ratio firms
respectively. Tabular presentation of data analysis was used where by the effect
and relationship one data has with another was quantified by simple
percentage representation . The analysis revealed that most of the firms
with low profit/earning ratios lacked the necessary strictness in the
application of costing documents in materials management. The results of
the two hypothesis tested in this study confirmed that loose application of
costing methods and techniques seriously affect the profit capabilities of
manufacturing firms. In view of the overwhelming importance of costing ~:! manufacturing
firms, this research study tended to recommend that [a] Costing should be effectively used in materials handling in manufacturing concerns and [b] That the national assembly should enact a law establishing "The Nigerian Institute For Cost Accounting Practitioners
