THE IMPACT OF OVERHEAD COSTS ON BUSINESS PROFITABILITY
- Project Research
- 1-5 Chapters
- Quantitative
- Simple Percentage
- Abstract : Available
- Table of Content: Available
- Reference Style: Available
- Recommended for : Student Researchers
- NGN 3000
ABSTRACT
THE IMPACT OF OVERHEAD COSTS ON BUSINESS PROFITABILITY
This research aims to examine the impact of overhead costs on business profitability by focusing on: (1) the relationship between overhead costs and profit margins; (2) the strategies for managing overhead costs; (3) the challenges in controlling overhead costs. A survey design is justified for this study to gather broad quantitative data. Using Taro Yamane's formula, a sample size of 300 respondents from Kaduna is selected, capturing diverse business perspectives. The case study focuses on a manufacturing firm, given the significant impact of overhead costs in such operations. The survey instrument has a reliability coefficient score of 0.87. Findings reveal that high overhead costs negatively affect profitability, and effective management of these costs can enhance profit margins. Strategies such as cost allocation, process optimization, and technology adoption are highlighted. It is recommended that businesses regularly review their overhead costs, implement cost-saving measures, and invest in technologies that streamline operations and reduce overhead expenses.
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