AN APPRAISAL OF COSTING METHODS FOR PERFORMANCE EVALUATION AND BENCHMARKING
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- NGN 3000
Abstract: AN APPRAISAL OF COSTING METHODS FOR PERFORMANCE EVALUATION AND BENCHMARKING
This research appraises various costing methods used for performance evaluation and benchmarking in the manufacturing sector in Enugu. The study's objectives are to compare the accuracy and reliability of different costing methods, assess their impact on performance evaluation, and identify the challenges faced. A survey design was utilized, gathering data from 250 financial managers and cost accountants, derived using Taro Yamane's formula. A case study of a leading manufacturing company in Enugu provided detailed insights. The reliability coefficient score was 0.86. Findings reveal that accurate costing methods, such as activity-based costing and standard costing, significantly enhance performance evaluation and benchmarking by providing detailed cost information and facilitating better decision-making. 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 costing methods with overall performance evaluation practices to enhance organizational performance.
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