The impacts of overhead absorption rate in pricing manufactured products. A case study of an agro based manufacturing company

50 PAGES (8571 WORDS) Accounting Seminar



 



ABSTRACT



The study is on the
impacts of overhead absorption rate in pricing manufactured products. The
choice of this research work is necessitated by the pivotal role overhead cost plays
in determining selling price and profitability of the manufactured industry.
The study used primary and secondary data. Primary data was collected through
interviews and administration of questionnaires among staff of Presco Plc
Benin, Edo State. A sample size of fifty respondents was adopted in the study.
Secondary data on the other hand was collected from journals, magazines,
textbooks, internet and official gazette of manufacturing industry. The
analysis and presentation of data collected was organized, using frequency
distribution table, simple percentage and non-parametric test of significance
known as Chi-Square (X2) to test the hypotheses formulated.  The findings of the study shows that there is
a significant relationship between overhead absorption rate and pricing of
manufactured products. The study therefore recommends among others that agro
based industry should ensure that an appropriate method of overhead costs
apportionment is adopted to enhance the overall performance of the company



 



TABLE OF CONTENTS



CHAPTER ONE: INTRODUCTION



mso-fareast-font-family:"Times New Roman"">1.1           
Background to the study



mso-fareast-font-family:"Times New Roman"">1.2           
Statement Problem



mso-fareast-font-family:"Times New Roman"">1.3           
Objective of Study



mso-fareast-font-family:"Times New Roman"">1.4           
Research Questions



mso-fareast-font-family:"Times New Roman"">1.5           
Statement of Hypothesis



mso-fareast-font-family:"Times New Roman"">1.6           
Significance of the study



mso-fareast-font-family:"Times New Roman"">1.7           
Scope and Delimitation of the study



mso-fareast-font-family:"Times New Roman"">1.8           
Definition of terms



mso-fareast-font-family:"Times New Roman"">1.9           
Historical Background of Eternit Limited
Sapele



 



CHAPTER TWO: LITERATURE REVIEW



2.1     Conceptual framework



2.2     Traditional Overhead Cost Apportionment
Method



2.3     Activity-Based Costing Method



2.4     Types of Business Overheads



2.5     The
Effect of Overhead Costs
on the
Selling Price of a Product



2.6     Features
of Overhead Cost
in the Selling
Price of a Product



2.7     Overhead
and Productivity in Manufacturing Industry



 



  CHAPTER
THREE: RESEARCH METHODOLOGY



3.0     Introduction



3.1     Design of the study



3.2     Population of Study



3.3     Sample Size



3.4     Sampling techniques



3.5     Research Instrument



3.6     Data Collection Instrument



3.7     Validity of research instrument



3.8     Reliability of Research Instrument



3.9     Method of Data Analysis



         



CHAPTER FOUR: PRESENTATION AND ANALYSIS OF DATA



4.0     Introduction



4.1     Presentation and analysis of Questionnaire Data



4.1     Testing of Hypothesis



 



CHAPTER FIVE: CONCLUSION, RECOMMENDATION AND OPTIONS



5.1     Summary



5.2     Conclusion



5.3     Recommendations



          REFERENCE



          APPENDIX