COST MANAGEMENT PRACTICES IN MANUFACTURING COMPANIES (IN CASE OF FAFA FOOD COMPLEX S.CO.)

Abstract

The purpose of this study is to assess and examine the cost management practice utilized by FAFA Food S.Co. This study employed a descriptive case study research design. The study relied on primary and secondary data. The primary data collected using interview with Finance Manager and cost and budget accountant of FAFA Food S.Co. The secondary data collected from documents and reports of the company. Data collected was analyzed using qualitative data analysis approaches. The study found out that the importance of top management support for application of cost management practice and the initiation of management to implement new cost management techniques to improve and enhance company performance. Also assess FAFA FOOD S.Co costing system, cost control tool, cost drivers and the frequency of reviewing its standard cost. The result of data analyzed showed that the FAFA Management has not shown any initiation to apply a new cost management techniques, they use traditional cost system and yet not familiarized with the new cost accounting practices such as activity based costing, This study recommends that FAFA S.Co top managements give support to implement a new and up to date cost management techniques in their overall manufacturing process, change costing system of the product from traditional costing to Activity based costing .