EFFECT OF COST CONTROL AND COST REDUCTION ON PROFITABILITY OF MANUFACTURING FIRMS IN NIGERIA: A CASE OF NESTLE NIGERIA PLC
Titus Wuyah Yunana, PhD, Yusuf Junior Gwamna and Abdulrasheed Bashir Dauda
Volume 3 Issue 2
Abstract
The study focuses on the effect of cost control and reduction on the profitability of manufacturing firms in Nigeria. The population of the study is the 78 manufacturing firms listed on the Nigerian Stock Exchange where a sample of one firm was use for this study for a period of ten years (2012-2021). Data used for the work were collected from the audited financial report of the selected firm. The collected data was analyzed, using the multiple regression. The result of the analysis revealed that administrative expenses are significantly influence profitability. However, both finance cost and change in cost of materials are negatively and insignificantly influencing the profitability of Nestle Nig. Plc. the study concluded that cost control and cost reduction are significantly influencing the profitability of Nestle Nig. Plc. The study recommends a proper adoption of cost control and reduction techniques that will not lead to company failure in the future; there should also be proper evaluation of cost control and reduction techniques and constant monitoring and check on the techniques adopted to ensure they suit the purpose in which it was adopted. Keywords: Cost Control, Cost Reduction, Cost Of Material, Admin Cost, Profitability, Finance Cost
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