COST CONTROL STRATEGIES AND CORPORATE PERFORMANCE

OF MANUFACTURING COMPANIES IN RIVERS STATE

BY

AJAYI SAMUEL SUNDAY

U2019/0606133

Being a project submitted in partial fulfillment of the requirements of the

Degree of Bachelor of Science (B.Sc) in Accounting.
University of Port Harcourt.
Port Harcourt, Nigeria.

SUPERVISOR: DR. J. N. NWAIWU

NOVEMBER, 2024.

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 DECLARATION

I hereby declare that this project is my original work and has not been previously

submitted or used for the award of any other degree.

AJAYI SAMUEL SUNDAY ………………………

U2019/0606133 SIGNATURE/DATE

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 CERTIFICATION

UNIVERSITY OF PORT HARCOURT

FACULTY OF MANAGEMENT SCIENCES
DEPARTMENT OF ACCOUNTING

COST CONTROL STRATEGIES AND CORPORATE PERFORMANCE

OF MANUFACTURING COMPANIES IN RIVERS STATE

BY

AJAYI SAMUEL SUNDAY

U2019/0606133

THE BOARD OF EXAMINERS CERTIFIES AS FOLLOWS:

THAT TO THE BEST OF OUR KNOWLEDGE THIS IS THE ORIGINAL
WORK OF THE CANDIDATE. THAT THE PROJECT IS ACCEPTED IN
PARTIAL FULFILLMENT OF THE REQUIREMENTS FOR THE AWARD OF
THE DEGREE OF BACHELOR OF SCIENCE (B.SC) IN ACCOUNTING

DR. J. N. NWAIWU -------------------------- ----------------------

PROJECT SUPERVISOR SIGNATURE DATE

DR. J. N. NWAIWU --------------------------- -----------------------

HEAD OF DEPARTMENT SIGNATURE DATE

PROF. G.I. UMOH

CHAIRMAN, BOARD OF ---------------------------- -----------------------
EXTERNAL EXAMINER SIGNATURE DATE

-------------------------------- --------------------------- ----------------------

EXTERNAL EXAMINER SIGNATURE DATE

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 DEDICATION

This work is dedicated to God Almighty, my creator, the source and sustainer of
my strength and my inspiration.

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 ACKNOWLEDGEMENTS

My maximum gratitude goes to God Almighty who sustained me and saw me

through tough and tunes that posed as a challenge to the completion of this
research project and Accounting program. I acknowledge my supervisor and head
of department, Dr. J. N. Nwaiwu, you are profound in research and you never
ceased to show me the light and path to succeed.

Special appreciation goes to all the lecturers of the Department of Accounting, for
their relentless effort and support despite tough and hard times, to make sure I
achieve this B.Sc program.
Special acknowledge goes to Dr. Gbenga Aliyu for your contributions, inspiration
and guide to see that I finish this program successfully.
I appreciate my mentor, my Dad, my strong backbone that made me to be here
today, Mr. Michael Babatunde Ajayi. My elder siblings Michael Bukola Yemisi,
Daniel Ajayi, Cecilia Mayowa Ajayi. To my role models, Wizkid, Davido,
Burnaboy, 2baba Olamide, Fireboy DML, Jcole thanks for making me believe in
my talent.
My profound appreciation goes to my friends turned brothers Tasie, Geobest,
Kojo, David, Parker Sammy, Tender, Paul and Landerz.
And finally to my fans, people that take out their precious time to care about my
music and brand, I call them "PRINCIPALS" they are the first in line of
importance. I appreciate you all.

God bless you all.

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 TABLE OF CONTENTS

PAGE
Cover page

Title Page i

Declaration ii

Certification iii

Dedication iv

Acknowledgements v

Table of Contents vi

List of Tables ix

List of Figures x

Abstract xi

CHAPTER ONE: INTRODUCTION

1.1 Background to the Study 1

1.2 Statement of the Problem 4

1.3 Aim and Objectives of the Study 5

1.4 Research Questions 5

1.5 Research Hypotheses 6

1.6 Significance of the Study 6

1.7 Scope of the Study 7

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1.8 Limitations of the Study 8

1.9 Definition of Terms 8

1.10 Organization of the Study 9

CHAPTER TWO: LITERATURE REVIEW

2.1 Theoretical framework 11

2.1.1 Portfolio Theory 11

2.1.2 Resource Based View Theory 12

2.1.3 Efficiency Structure Theory 13

2.2 Conceptual Framework 15

2.2.1 Cost Control 14

2.2.2 Profitability 25

2.2.3 Measures of Profitability 27

2.2.3.1 Percentage of Market Share 27

2.2.3.2 Net Profit Maximization 30

2.3 Empirical review 33

2.4 Identification of Gap 37

CHAPTER THREE: METHODOLOGY

3.1 Research Design 39

3.2 Population of the Study 39

3.3 Determination of Sample Size 40

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3.4 Data Collection Techniques 40

3.5 Operational Measures of the Variables 41

3.6 Method of Data Analysis 41

3.7 Validation and reliability test 42

3.8 Model specification 42

CHAPTER FOUR: RESULTS AND DISCUSSIONS

4.1 Data Presentation 45

4.2 Descriptive Statistics 47

4.3 Data Analysis 48

4.4 Discussion of Findings 57

CHAPTER FIVE: SUMMARY, CONCLUSION AND

RECOMMENDATIONS
5.1 Summary 59

5.2 Conclusion 60

5.3 Recommendations 60

5.4 Suggestions for Further Studies 61

5.4 Contribution to Knowledge 61

References 63

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 LIST OF TABLES

3.1 Tabulation of Operational measures 41

4.1 Data collected 46

4.2 Descriptive Statistics of Standard Costing, Budgeting, Net Profit

Maximization, Percentage of Market share. 47

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 LIST OF FIGURES

2.1 Operational Framework of Cost control and Profitability in

Manufacturing Companies in Rivers State, Nigeria. 32

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 ABSTRACT

This study investigated Cost Control Strategies and Corporate Performance of Manufacturing
Companies in Rivers State. The aim of the study is to determine the relationship between Cost
Control Strategies and Corporate Performance of Manufacturing Companies in Rivers State. The
study was anchored on the Portfolio theory as baseline for the research. The ex-post facto
research design was employed. The study made use of secondary data which were sourced
through the review of relevant document. The Pearson’s correlation coefficient analysis
technique was used to test the hypotheses. The result revealed that there is significant
relationship between cost control strategies and corporate performance of manufacturing
companies in Rivers State. Based on the findings the study recommended that due to the
significant relationship between cost control strategies and corporate performance,
manufacturing companies in Rivers State should ensure that cost control strategies are a regular
effective practice in the organisation to help keep the organizational goals and objectives in view
and that the management of the organization, especially those in charge of the organizational
planning, should ensure that every organizational phase is well audited and checked to mitigate
possible issues of organisational complacencies and misappropriation of funds and miss-
management of processes.

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