Background of the Study
Operational efficiency is critical to the profitability and sustainability of manufacturing firms, especially in competitive industries such as cement production. Cost accounting serves as an essential tool for monitoring, analyzing, and optimizing costs associated with production, distribution, and administrative functions. In the Nigerian manufacturing sector, Dangote Cement Plc stands out as a leader in leveraging cost management strategies to achieve operational excellence (Okonkwo & Musa, 2024).
Cost accounting facilitates informed decision-making by providing insights into cost structures, identifying areas of waste, and ensuring resource optimization. For companies like Dangote Cement, effective cost accounting is vital in managing raw material expenses, energy costs, and supply chain efficiency, contributing to improved operational performance (Adebayo, 2023).
This study evaluates the role of cost accounting in enhancing operational efficiency at Dangote Cement Plc, highlighting its impact on performance and competitiveness.
Statement of the Problem
Despite the recognized importance of cost accounting, many manufacturing firms face challenges in implementing effective cost management practices due to inadequate systems, lack of expertise, and resistance to change. These issues can lead to inefficiencies, increased production costs, and reduced profitability (Adeoye et al., 2025).
This study focuses on how Dangote Cement Plc utilizes cost accounting to address operational challenges and improve efficiency, providing lessons for other firms in the industry.
Objectives of the Study
1. To analyze the role of cost accounting in enhancing operational efficiency at Dangote Cement Plc.
2. To evaluate the challenges associated with implementing cost accounting practices.
3. To propose strategies for optimizing cost accounting to improve operational performance.
Research Questions
1. How does cost accounting enhance operational efficiency at Dangote Cement Plc?
2. What challenges are associated with implementing cost accounting practices?
3. What strategies can optimize cost accounting to improve operational performance?
Research Hypotheses
1. Cost accounting significantly enhances operational efficiency in manufacturing firms.
2. Challenges in implementing cost accounting negatively affect operational performance.
3. Improved cost accounting practices lead to better resource optimization and profitability.
Scope and Limitations of the Study
The study focuses on the cost accounting practices of Dangote Cement Plc, analyzing their role in enhancing operational efficiency. Limitations include access to proprietary cost data and the potential for variations in practices across different plants.
Definitions of Terms
• Cost Accounting: A process of recording, classifying, and analyzing costs incurred in production to improve efficiency.
• Operational Efficiency: The ability to achieve optimal output with minimal resource wastage.
• Manufacturing Sector: Industries involved in the production of goods using raw materials and labor.