An Assessment Of The Relationship Between Standard Costing And Variance Analysis As A Tool For Management

CHAPTER ONE
1.1 INTRODUCTION.
The bottling industry is presently undergoing a revolution worldwide due to the twin impacts of deregulation and technological break through most company in Nigeria are quite relatively operating on differentiated cartel because of the trend and competitive environment.

Under such conditions costing and management decision process strategy suddenly become more vital tools to booster services, it should be noted that such concepts of “Standard costing” and” management” all about? Standard costing is a technique which uses standard for costs and revenues for the purpose of control through variances analysis.
Management is an act that coordinates all group effort.

It does not only concerned with profit oriented enterprise but an act of every human Endeavour’s be it product or service wise.
Managing is essential in all company as well as in all levels of organization in attainment of the group goals.
The coca-cola Bottling Company of Nigeria Plc can be traced briefly with that of united state of American which came in to being in Nigeria in the year 1953.

When Nigeria bottling company set up it first plan in Lagos Precisely at Oyingbo but later move to Apapa, it has an additional development to the existing companies in the area, a contributed immensely to the socio- economic group of the country.
John Pemberton was the investor of coca-cola in May 1883 being a book keeper, he designs the following script that distinguishes the advertising and marketing activities, Robinson also had excellent pen man ship. It was he who first script “coca-cola in the following letters which has come the famous logo today.

The soft drink was first sold to the public of the soda fountain in Jacobs pharmacy in Atlanta.
In 1887 another pharmacist, a business man bought the formula for coca-cola from the investor and was one of the America.

Most popular fountain drinks how at the helm the coca-cola company increased syrup sales by 4000% between 1890 and 1900.

In April 23, 1985 the trade secret “new coke” formula was released, today products of coca-cola company are consumed at the rate of more than one billion drinks per day.
The success of coca-cola bottling company of Nigeria place gave birth to opening of some branches like port-harcourt, kano, Ibadan, Enugu, benin and Ilorin which is used as the case study.

This success also brought the development of some sister industries like delta Glass company which supplies million of bottles required to keep a large bottle company in operation.

Als it help in the receding of broken bottles in ijebu ode and kano state which manufactures as the berum plastic company that makes the plastic creates for carrying bottles.
The coca-cola Nigeria bottling company produce drinks such as coke, crest, bitter lemon, Schweppes fanta. Soda water and eva table water.

The Nigeria coca-cola bottling company of Ilorin unity plant is sited along coca-cola at unity bus stop Ilorin kwara state.

The commission of that plant was in 1944 while production actually stated in 1995.
1.2 STATEMENT OF THE RESEARCH PROBLEM.
The statements of the research problems facing standard costing as a tool for effective management decision making include the following;
i. What do you understand by the word statement costing?
ii. Do you know the type and element of standard?
iii. What relationship do standard costing and budgeting have?
iv. Is there anything you know about management decision making?
v. What are the limitations of standard costing?
vi. Is there anything called variance in standard costing?
1.3 OBJECTIVES OF THE STUDY
The success of business ventures depend largely on a well defined and clearly stated management decision making because a sense of directions and focus as well spelt out.

The aim and objectives of this study are:
i. To highlight the concept of standard costing.
ii. To enumerate the type and element of standard cost
iii. To show the extend of standard costing in budgeting
iv. To know the relationship between standard costing and variance analysis as a tool for management of standard costing.
1.4 JUSTIFICATION OF THE STUDY.
The research work is undertaken in an attempt to identify the major contribution of standard costing as an aid to management decision making.

The findings and suggestions of the write up will attempt to find a lasting solution to problems facing industries and those who are already engaged in business.

It will hopefully go a long way in enabling industries to improve in their effort toward making Nigeria an industrialized area and development economics management of the country.