ABSTRACT

The purpose of this study is to carry out a research on how costs are controlled and reduced in manufacturing organization. This has to do with unveiling the different elements of cost control and reduction being adopted and their uses and determine ways by which these problems of constraints can be minimized; Okpebho farm industry is a case study for this project. Twenty (20) responded to the questionnaire. A statistically significant reliability efficient of 95.4% was obtained for the questionnaire\. The aim of this research work is to reject or accept the following hypothesis.

a)     That an efficient cost control and cost reduction is necessary for companies growth and development together with stability.

b)    That cost control and cost reduction leads to the achievement of increase efficiency by reducing production.

Sales administration, distribution, research and development cost. After the analysis the following are recommended for improvement or the operations of the cost controls and cost reduction department. (a)Employment of more professionals (b) maintaining an efficient budgeting program (c) cost should be controlled and reduced at whatever levels it is originated and initially approved (d) report prepared for cost controls should be accurate, clear, concise pertinent, regular and timely. The project also reveals the necessity for managers of all business functions or organization to understand the essential principles of control costing reduction, which includes: (a) that cost should be related as closely as possible to their causes. (b) Expected or future costs are not charged to cost units. (c) Abnormal cost is excluded from costs (d) past costs are not charged to future periods. Finally, meaningful suggestions were put forward on the basis of the analysis and findings to ensure a more efficient and adoption of an appropriate cost control and cost reduction and maximization of the value of the firm.