THE IMPACT OF COST ALLOCATION METHODS AND THEIR RELEVANCE IN ORGANIZATION COST MANAGEMENT
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- NGN 3000
Abstract:
This research explores the relevance of cost allocation methods in cost management in Lagos State, Nigeria. The objectives are to: (1) assess how different cost allocation methods impact cost accuracy and transparency, (2) evaluate their effect on financial decision-making, and (3) analyze the challenges of implementing various cost allocation methods. A survey design was employed to collect data from financial managers and accountants. The sample size, determined using Taro Yamane's formula, ensures statistical significance. The reliability coefficient score of the survey was 0.90. Findings reveal that effective cost allocation methods significantly enhance cost accuracy and transparency, improving financial decision-making. However, challenges such as method selection and complexity were noted. It is recommended that companies in Lagos State adopt appropriate cost allocation methods to improve cost management and financial decision-making.
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