EFFECT OF STANDARD COSTING ON ORGANIZATIONAL PERFORMANCE OF SOME SELECTED MANUFACTURING COMPANIES IN ONITSHA ANAMBRA STATE.

Abstract

The study examined the effect of standard costing on organizational performance of some selected manufacturing companies in Onitsha. The specific objectives of the study are: to examine the extent to which standard costing affect the reduction of normal losses: to assess the effect of standard costing on gross profit, to determine the effect of standard costing on cost reduction and to provide a basis for establishing ways of improving performance. The population of the study consisted of selected manufacturing firms in Onitsha. The study employed primary method of data collection and applied through the administration of questionnaires designed in a 5- point like it scale. The formulated hypotheses were tested using Z- test statistics at 5% level of significant. The results revealed that there is significant positive effect on all the variables of study. Based on the above findings, the researchers recommends that manufacturing firms should adopt and consistently apply standard casting in their accounting system so as to ensure the efficient use of resources for effective control of costs and enhancement of organizational performance.