THE ROLE OF COST ACCOUNTING IN PRICING DECISIONS: A CASE STUDY OF NESTLE NIGERIA LTD.
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Abstract: THE ROLE OF COST ACCOUNTING IN PRICING DECISIONS: A CASE STUDY OF NESTLE NIGERIA LTD.
This research explores the role of cost accounting in pricing decisions, focusing on Nestle Nigeria Ltd. The objectives are to analyze how cost accounting data influences pricing strategies, assess the impact on profitability, and evaluate the challenges faced. A survey design was used to gather data from 250 financial managers and accountants at Nestle Nigeria Ltd, calculated using Taro Yamane's formula. A detailed case study of Nestle Nigeria Ltd provided comprehensive insights. The reliability coefficient score was 0.89. Findings indicate that cost accounting plays a crucial role in pricing decisions by providing accurate cost data, enabling better pricing strategies, and enhancing profitability. However, challenges such as data collection difficulties and compliance issues were noted. Recommendations include providing more training on cost accounting, simplifying data collection processes, and ensuring regular reviews of pricing strategies based on cost accounting data.
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