BACKGROUND OF THE STUDY The preponderance of vast number of small scale industries in Nigeria suggest that the situation offers substantial opportunity for the intensive development and improvement of this sector, with appropriate injections of technology, improved management, efficient marketing techniques and so forth (Echu, 2002). The contributions of small industries to development are generally acknowledged. Small industries face many obstacles that limit their long term performance and invariably their development and growth. Some of the causes of failure have been traced to poor management and lack of knowledge of proper accounting system employed by these industries (Akande, 2011). Manufacturers employ various system of accounting which requires a timely, relevant and accurate measure of cost, resources consumed in manufacturing their product and managerial decision making. Since the system of accounting used by industries is one of the key things that determine industrial growth and profitability, they must make use of a system of accounting which will enable them determine the volume of sales, cost of product and profitability at any given time (Okoli, 2011). Despite these efforts, most small scale industries in Nigeria still fail mostly because of lack of sound professional principle that is capable of providing information on the activities and decision process of the industry. Small scale industries cannot boast of professional Cost Accountants capable of providing cost accounting information on the activities and decision process of the industry. It is recognised that appropriate cost accounting information is important for successful management of an industry whether it is large or small (European Commission-Enterp... ... middle of paper ... ...raining for Small Business. Journal of European Industrial Training Vol.2 , 17. Lucey, T. (1996). Costing (5th Edition). London W12 8AW: Letts Educational Aldine Place. Magbabeola, J. O., Magbagbeola, E. O., & Adetoso, J. A. (2010). Application of Operations Research Tools to Aid Performance Growth of Small Scale Industry in National Development in Sub-Saharan Africa: Case Study of Nigeria. Continental Journal for Social Sciences . Mills, S., & Kleiner, B. H. (1992). Accounting to Enhance Organisational Productivity. Journal of Industrial Management & Data Systems Vol.92(4) . Okoli, B. E. (2011). Evaluation of the Accounting Systems used by Small Scale Enterprises in Nigeria. Asian Journal of Business Management Vol.3(4) . The Institute of Company Secretaries of India. (2013). Cost and Management Accounting. Dwarka, New Delhi: Delhi Computer Services.
The managerial accounting system at Bridgeton, as it is presented, seems to be lacking detail necessary for efficient analysis. The sections used are sales, direct material, direct labor and overhead by account number, each divided into individual accounts and summed to find totals. There is no separation of fixed and variable costs in any of the accounts, making it difficult to analyze exactly where operations are costing money and, therefore, how they could possibly be improved. The presentation of the information groups all sales together and the different categories of costs together and does not provide for individual product analysis. The products are analyzed (categorized into classes) based on their costs, with no consideration to revenues associated with these products, and no real understanding of the overhead applied to each product. The overhead costs are applied to accounts based on labor and materials of the company as a whole, rather than using considerations associated with the individual products.
Before venturing into performance investigation of a small enterprise, one must understand what is the scope and hardships faced by a small enterprise in the UK. Small companies are the big contributors to the economy of the UK. There are around five million small businesses in the UK, which is approximately more than 50% of the economy. (Rich, 2016) The enterprise must work in the right direction at a right pace to stand out from the rest of the business units. The management in an enterprise must know the strengths and weaknesses of the business enterprise to drive it through the thick and thin in the market.
It is argued that SME’s are financially sustainable and high outreach means to have a greater livelihood as well as having a positive impact on development because they guarantee sustainable access to income by the poor (Rhyme and Otero, 1992). The focus of this augment is that SME’s enhances the socio-economic well-being of the poor people by facilitating change or improvement in their lives which is reflected in their spending power and or living standards.
Management accounting in organisation is very important for decision-making and to make the business more efficient and therefore increasing its profits. Is the process of preparing accounts that can help managers to make day-to-day and short-term decisions, by providing them with accurate and timely key financial and statistical information...
As with other professional disciplines, understanding and upholding ethics is very important in the accounting field. Small-business investors and leaders consistently rely on the ethical collection and delivery of financial information, and are sometimes placed at risk if accounting ethics are not preserved. For a small-business owner, investor or manager, learning the basics of accounting ethics and their function is a good way to avoid legal and financial trouble. The professional accounting organizations establish codes of ethics and integrity standards that their me...
In this paper, I’m going to be telling you the difference between a Small business and a corporation. These two have a lot in compared and a lot of difference. There are a lot of small business and corporation growing fast throughout the world. Both businesses take a lot to manage and you also must have the skill and the ability to do so. If it was easy, everybody would have some type of business growing in this world
It is a little known fact that small businesses make up a major factor of the American workforce. Since the word small is in the title most people think nothing of them, but when one takes the time to think that there are millions of small businesses, most with at least two to ten workers, the amount of people begins to add up. There are many factors that could contribute to a business failing, and it happens all the time in America. Small businesses must have solid business plans, a good use of technology, appealing merchandise, and appropriate financing to survive and prosper in the economy.
The SMEs sector’s growth of output trend to decrease in recent years since liberalization and adjustment policies (Bari and Haque, 2008). So, it is important to specially address the policy issues regarding lending toward the SME sector. This sector is facing severe problem in financing, regulatory aspects, access to non-financial inputs. Some recent trend shows that Government policies have discriminated against small-scale enterprises (Raza and Murad, 2010). There is nothing wrong with a situation in which inexperienced entrepreneurs are unable to get institutional credit. In the same study he shows that, the relative decline of small-scale enterprises in most developing countries has been accelerated by the industrialization policies adopted in these countries (Bari and Haque, 2008). Protection, regulatory constraint, investment incentives, credit control, and the promotion of industry in the public sector have all discriminated against the small. Especially, facilities regarding small groups like female were poor and create adverse impact on the growth of SMEs (Sadaquat and Sheikh, 2010). The
Osagbemi (1981) the assets of the main factors responsible for the failure of small businesses, including a lack of luck, money is insufficient, inadequate preparation, a lack of business relations, the low level of business education, lack of experience, poor health, lack of management capabilities and
When studied in any reasonable depth, however, process cost is among the most difficult topics covered in cost accounting courses.” They go on to add that the contradiction of being easy to introduce as a concept and being difficult to understand when studied in depth can be traced to a students’ inability to separate relevant data from irrelevant data and the inability to organize a maze of interrelated data into usable form. As is frequently true when dealing with accounting matters, the concept may be relatively simple however the application of the concept is
There are various definitions of smaller enterprises provided from different times and areas. One of the earliest definitions was provided by Bolton Report (1971), which has indicated that a small enterprise should meet three criteria: independent (not part of a larger enterprise); managed in a personalized manner(simple management structure); relatively small share of the market(the enterprise is a price ‘taker’ rather than price ‘maker’). There are also quantitative definition of the smaller enterprise in terms of measurement of the assets, turnover, profitability and employment from different sectors and countries (Bolton, 1971).
If we look at the contribution of Accounting to Financial Economic Thought, the initial idea of an individual, a firm or an economy is obtained on the basis of Financial Accounting information provided. An in-depth understanding of the financial accounting information provided will guide the decisions towards an optimal resource allocation.
Small businesses have been considered the mainstay in countries around the world. In many European countries for example, the small business has been considered crucial to the success and flourishment of the country in general. Most individuals start upon a small business venture in the hopes of realizing ownership, independent profits and personal success. Small businesses can prove extremely successful when planned properly. Studies suggest that several small businesses, however, close or fail within the first few years of operation. This failure suggests that a majority of small business owners may not have as yet realized the crucial success factors necessary for successful implementation of a small business.
Growth in the small and medium business in Canada and other developed countries has been very significant. This sector of the business community now represents about 40 percent of GDP and accounts more than half of total employment. Today small businesses are more diverse and more vigorous than ever, but they also faces newer and more challenges or inhibitors to their growth than their older conter parts. This research will attempt to find the answer to the following hypothetical question:
Osagbemi (1981) assets that the major factors responsible for small business failure includes lack of luck, insufficient money, insufficient preparation, lack of business connections, low level of business education, lack of experience, poor health, lack of managerial ability etc.