AN ASSESSMENT OF THE PREDOMINANT METHOD BETWEEN VARIABLE COSTING VERSUS ABSORPTION COSTING TECHNIQUES IN REAL ESTATE
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- NGN 3000
Abstract: AN ASSESSMENT OF THE PREDOMINANT METHOD BETWEEN VARIABLE COSTING VERSUS ABSORPTION COSTING TECHNIQUES IN REAL ESTATE
This research assesses the predominant method between variable costing and absorption costing techniques in the real estate sector in Ogun. The study's objectives are to compare the accuracy and reliability of both costing methods, evaluate their impact on cost control, and identify the challenges faced. A survey design was employed, with data collected from 200 financial managers and accountants, derived using Taro Yamane's formula. A case study of a real estate firm in Ogun provided detailed insights. The reliability coefficient score was 0.84. Findings indicate that while variable costing provides a clearer picture of cost behavior, absorption costing is more comprehensive for financial reporting. However, challenges such as data collection difficulties and compliance issues were noted. Recommendations include providing more training on costing methods, simplifying data collection processes, and integrating both costing methods to ensure comprehensive cost management.
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