1.1 Introduction

1.2 Statement of the research problem

1.3 Objective of the study

1.4 Statement of Hypothesis

1.5 Research Methodology

1.6 Scope and limitation of the study

1.7 Significance of the study

1.8Definition of terms


2.1 What is control?

2.2 Purpose of control

2.3 Division of control

2.4 Basic Element of control

2.5 Cost control

2.6 Cost

2.7 Cost and expense

2.8 Purpose of cost studies

2.9 Cost center

2.10 Cost unit

2.11 Element and classification

2.12 Other cost of classification

2.13 Cost control techniques


3.0 Research Design

3.1   Research Instrument

03.2 Method of data collection


4.1 Research hypothesis

4.2 Research of findings

4.3 Research of data analysis


5.1 Summary

5.2 Recommendation

5.3 Conclusion





A business can be defined as the sum total of those activities that have their main purpose of creations, maintenance and extension of a concern, with continuous to exist because it earns profit or than benefits.

Business is set-up to achieve certain objectives, these objectives may range from maximum of the organizer, wealth, rendering of certain essential service to the community, capturing of larger share of market for it product or services to maximization of profit or minimization of cost.

In achieving these goals, resources inform of human and material have to be  employed these resources employed are measured in quantitative term and then translate them into what is known as cost.

A rational businessman has in his mind apart from other aim in his business undertaking, the maximization of profit and minimization of cost. But the business operation environment is dynamic and complex. Some factor, internal and external, may affect the cash flows position of the firm and possesses a threat to the going concern intension of the organization of the business.


The major problem of this study is to find out the effect of cost and reduction of maximization of cost. Undoubtedly, it will lead to decline in operating profit or low return on invested capital and gradually culminate into cash flows or liquidity problems.

A continuous high operational cost with less revenue will have adverse effect on the break even position of an organization.

In view of the above, there will be need to put in place an effective operational and control strategies to overhaul and revamp the operational performance of the business so as to  have stable and stand financial stand.

Although, strategies is never set where a business has no problem of any form, but it may be set to improve the operational standard of a business enterprise.

There are many strategies that can put in place to solve business problem. Among the strategies for solving business economic problem are the cost control and cost reduction is used to achieve the corporate objectives.

More so, the cost control techniques have the broad objective of curtaining cost within a predetermined target but cost reduction is an active and dynamic concept that attempt to extract more from the factor of introduction without loss of effectiveness. It also aims at reducing costs from accepted standard and at the same time maintaining the effectiveness of the product or services. Strategies in business organization.

Also, the problem of the cost reduction in economics of Nigeria business organization and the effort made in solving economic problem of the cost reduction in Nigeria business organization.

However, the fulfillment of this intension in totality is very subjective and unrealistic as a result of inevitable environmental factor which have direct or in direct impact on the business.

The environmental to have effects on the cost structure of organization, they are determinant of the operational cost of activities or service being carried out by a business enterprise as they influence more or most significantly the management policies.

For example, taxation, which is one of the government fiscal policies in the annual budget, will in no doubt, have effect on the operational cost of a company. This is one of the operating environmental factors and it is uncontrollable by the management of a business.

More so, the organization and operational policies of a company will have favorable or adverse effect on the cost structure of such organization.

Therefore, an incessant increase in the operational cost will negate the aim

However, the success of this strategy will depends on the style of planning the business uses. The inability of a company to encourage “GAOL CONGRUENCE” is one of the associative problems militating against the successful employment of these schemes.

In attempt for an organization to achieve its goal for satisfaction of individuals in the firm must be created. The achievement of goal congruence requires consideration by the firm, a broad range of human need in additional to those that can be satisfied by economic rewards.

Where the above cannot be achieved, the effects of cost control and cost reduction scheme might not augur well for the business, therefore, cost control and reduction strategy must be meticulous used and implemented on achieving the desired objective of the schemes.

The techniques involves the strategies shall be fully considered in the subsequent chapter.


The purpose of the research is to find out what are the effect of the cost control and cost reduction strategies on the overall performance of a firm. It will reveal the short-coming in these strategies for solving business economic problems.

The research will also attempt to define and explain the meaning of cost control and cost reductions, the technique involves as well as the different in their applications.

However, the result of the research will serve as a single guide to policy makers in the business organization in taking decision as regard to thus topic.


Cost control and cost reduction strategies do not lead to achievement of corporation objectives and cannot be used to solve business economic problems.

Hi: Cost control and reduction strategies can be used to achieve corporate objective and also used to solve business economic problems.

Hi: Cannot be used.


In the course of the research, both primary and secondary data will be used; some companies will be used as a case study in the research project.

The secondary data will be got from annual report, audited account of the various companies and other various publications relevant to the study.


Due to time and financial constraint only few companies will be used for the research and questionnaires will be serving on the companies. The companies will be selected warmly from the different sector of economy.

The scopes of cost reduction embrace activities of the entire company, from production to marketing and at all level with the organization from the operation to top levels. Cost reduction effort may include the following


I. Quantity discount or cash discount for early payment to supplier may be negotiated at favorable discount rates.

II. Inventory control policy might need improvement

III. Value analysis may be carried out

IV. Procedures for reducing material wastage in production should be instituted.


I. Labour efficiency may be improved by work study.

II. Unit labour cost and unit overhead cost may be reduced by having production efficiency rewarding plan with the employees


I. Where there is the desire to allow for discount, it should be done on a regular basis.

II. Bank overdraft expense may be better reduced by effective cash monitoring efforts.


I. As a company expands in activities, there may be duplication of effort in the different face of it operation. However, this duplication can be removed by ensuring that resources are concentrated in the firm and this is referred to rationalization effort, which is aimed at cost reduction that brings about efficiency at the workplace.


At the end of the research, the effect of excessiveness in the use of cost control and cost reduction strategies in an operation will become clearer.

The management will always take cogitation of other option in evaluating solution to business economic problems.

Also the problem, which can warrant the use of the two strategies, will be discussed and alternative strategies which management can adopt in solving the business economic problems will be taken in consideration.


I. Undue Expenses: Undue expenses can be removed without having to compromise the quality of this term of production or unit of services provided. Consumers can only appreciate buying goods of better quality. Nonetheless, a lowering of the standard may ensure the reduction of cost but at the expense of the quality of goods.

II. Management Inconsistency: Cost reduction programme require the support and commitment of the top management and this has to be on a regular and consistent basis in order to avoid complacency not minding whether the business climate is harsh or friendly.

III. Resistance to change by employee: Employee may want to react to change negatively as a result of past belief on norms, this can be addressed by ensuring that existing system or work environment situations are constantly reviewed and friendly employee are involved at every stage in order to gain their confidence and support with this, negative will be eliminated and cost reduced

IV. Faultless system: A faultless system may be a desired one but effort should be made to ensure that it is not over blown so that unnecessary controls are removed.

V. Avoidance of elaborated procedures: Elaborate procedures of allowed in a company may bring about costly operation at the expenses of ensuring that employee capabilities are recognized which could lower cost.

VI. Creative Ideas: Since issue can be approached from different ways, ideas and contribution from everyone involved in cost reduction programme must be allowed for in order to eliminate wastes. Creative ideas can be enhanced by ensuring that employees are given good incentive to work and the work environment must be friendly so that any scheme put in place can be successful.

VII. Areas of cost reduction: For cost reduction activities to be meaningful, the sources for incurring these cost such as finance, marketing, production, human resources. Engineering, maintenance, etc need to be considered in terms of the material, labour and overhead costs involved in the area mentioned. There is need for using an integrated approach whereby cost is not considered in isolation, but their inter-relatedness is given some consideration. The manager is, therefore, expected to exchange ideas that will allow for goal congruence to be attained.

VIII. Maintaining cost reduction: Reduction can be sustained or maintained by ensuring that there is consistent control of costs in a place with the aid of budgetary control techniques.

IX. Communication: Information to employee must be such that they are timely relevant, focused and less costly. Information will be valued, where employees are convinced that their future is guaranteed and prospect can be ascertained at the same time. Good and equitable personnel manual must also be in place.



2.1 What is Control:

Management performs various forms of functions in the attainment enterprises set objectives among these functions is control. Control however a general term is and can be given a single definition. Its definition may be a narrow or a broad based in nature.

On narrow basis, control means maintenance of standard and the imposition of penalties. Why is broad based manner, It refers to management itself in this, control embraces the various processes by which management:

a) Determines its objective

b) Draws plains to attain those objectives.

Organizes and supervises the operation necessary for the implementation of plans.

Control also implies the investigation of demotion from planned objective so that performance level may be brought into line with planned level. More so, it may be defined as the management action to assure conformity with the plan or budget.

Lucey T (1988) also defines control as the efficiency use of resources to achieve a previously determined objective or set of objective constrained within a plan in an.

Organization sense, control is exercised by the feedback of information on performance compared with plan.



RESEARCHWAP.COM is an online repository for free project topics and research materials, articles and custom writing of research works. We’re an online resource centre that provides a vast database for students to access numerous research project topics and materials. guides and assist Postgraduate, Undergraduate and Final Year Students with well researched and quality project topics, topic ideas, research guides and project materials. We’re reliable and trustworthy, and we really understand what is called “time factor”, that is why we’ve simplified the process so that students can get their research projects ready on time. Our platform provides more educational services, such as hiring a writer, research analysis, and software for computer science research and we also seriously adhere to a timely delivery.


Please feel free to carefully review some written and captured responses from our satisfied clients.

  • "Exceptionally outstanding. Highly recommend for all who wish to have effective and excellent project defence. Easily Accessable, Affordable, Effective and effective."

    Debby Henry George, Massachusetts Institute of Technology (MIT), Cambridge, USA.
  • "I saw this website on facebook page and I did not even bother since I was in a hurry to complete my project. But I am totally amazed that when I visited the website and saw the topic I was looking for and I decided to give a try and now I have received it within an hour after ordering the material. Am grateful guys!"

    Hilary Yusuf, United States International University Africa, Nairobi, Kenya.
  • " is a website I recommend to all student and researchers within and outside the country. The web owners are doing great job and I appreciate them for that. Once again, thank you very much "" and God bless you and your business! ."

    Debby Henry George, Massachusetts Institute of Technology (MIT), Cambridge, USA.
  • "I love what you guys are doing, your material guided me well through my research. Thank you for helping me achieve academic success."

    Sampson, University of Nigeria, Nsukka.
  • " is God-sent! I got good grades in my seminar and project with the help of your service, thank you soooooo much."

    Cynthia, Akwa Ibom State University .
  • "Great User Experience, Nice flows and Superb functionalities.The app is indeed a great tech innovation for greasing the wheels of final year, research and other pedagogical related project works. A trial would definitely convince you."

    Lamilare Valentine, Kwame Nkrumah University, Kumasi, Ghana.
  • "Sorry, it was in my spam folder all along, I should have looked it up properly first. Please keep up the good work, your team is quite commited. Am grateful...I will certainly refer my friends too."

    Elizabeth, Obafemi Awolowo University
  • "Am happy the defense went well, thanks to your articles. I may not be able to express how grateful I am for all your assistance, but on my honour, I owe you guys a good number of referrals. Thank you once again."

    Ali Olanrewaju, Lagos State University.
  • "My Dear Researchwap, initially I never believed one can actually do honest business transactions with Nigerians online until i stumbled into your website. You have broken a new legacy of record as far as am concerned. Keep up the good work!"

    Willie Ekereobong, University of Port Harcourt.
  • "WOW, SO IT'S TRUE??!! I can't believe I got this quality work for just 3k...I thought it was scam ooo. I wouldn't mind if it goes for over 5k, its worth it. Thank you!"

    Theressa, Igbinedion University.
  • "I did not see my project topic on your website so I decided to call your customer care number, the attention I got was epic! I got help from the beginning to the end of my project in just 3 days, they even taught me how to defend my project and I got a 'B' at the end. Thank you so much, infact, I owe my graduating well today to you guys...."

    Joseph, Abia state Polytechnic.
  • "My friend told me about ResearchWap website, I doubted her until I saw her receive her full project in less than 15 miniutes, I tried mine too and got it same, right now, am telling everyone in my school about, no one has to suffer any more writing their project. Thank you for making life easy for me and my fellow students... Keep up the good work"

    Christiana, Landmark University .
  • "I wish I knew you guys when I wrote my first degree project, it took so much time and effort then. Now, with just a click of a button, I got my complete project in less than 15 minutes. You guys are too amazing!."

    Musa, Federal University of Technology Minna
  • "I was scared at first when I saw your website but I decided to risk my last 3k and surprisingly I got my complete project in my email box instantly. This is so nice!!!."

    Ali Obafemi, Ibrahim Badamasi Babangida University, Niger State.
  • To contribute to our success story, send us a feedback or please kindly call 2348037664978.
    Then your comment and contact will be published here also with your consent.

    Thank you for choosing