STATEMENT OF THE PROBLEM
In this present time of poor economy situation of the country, there has been a persistence race of poor variance on the cost of a product, which mostly was due to the lack of control. The primary motive of a firm is to set a standard on its product inorder to achieve its goal and objectives. Thus, the need for the satisfaction parameter to be enjoy by the society at large is that, any company that makes profit must be able to enjoy more people thereby satisfying an essential aspect of the societal need. Unfortunately, some organization concentrate more on manufacturing as only the conversion of raw material to finished goods through the utilization of labour and overhead without paying much attention to the cost of good sold during a given period.
As some organization face serious unfavourable returns, “UNILEVER PLC” is facing a serious profit squeeze. Hence, this project will analyze the effect of overhead cost control on the selling price of product, that could considerably enhance a company.
1.3 OBJECTIVE OF THE STUDY
The aim and objective of this research work are:
1. To know the activities involve in the physical charging of raw materials to finish goods.
2. To identify the process of charging to cost center of a fair share of common item of cost.
3. To identify the actual overhead cost that can be trace directly to each cost center.
4. To know that the differentiation of actual overhead and absorbed factory overhead is essential.
5. To know that the marketing sales and subsequent services to the output of a business is an essential role to be played on the selling price of a product.
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