STATEMENT OF THE PROBLEM
Hilton (1991:201) observed that both the market forces of demand and supply and the cost of production have a Significant bearing on determining prices. Equally he explained that there are other variables that influence pricing decisions according to him, this includes: Manufacturer’s pricing objective, economic situation, level of competition, and availability of close substitute. a. For pricing to be effective, firms must incorporate all these factors in selecting the most advantageous price for its product. At times, firms are not in the habit of considering these factors and this has led to the shutting down of many factories, downsizing of workforce and in most cases, winding up of firm’s (Hilton, 1991:201). b. Profit plan are made in form of budget and they help firms to forecast the level of profit, cost and revenue, they intend to generate in order to gain competitive advantage. Unfortunately many firms still do not prepare these plans, thus, this has led firms undertaking unplanned ventures resulting in escalation and inability of firms to foresee shortage in resources or finance or personnel needed in the future operation of the firm. Where no 5 plans exist, there will be no basis for firm to compare or evaluate their performance. c. Based on the foregoing, the problem of this study is in three (3) folds. 1 The failure of some firms to incorporate factors such as economic situation, level of competition, availability of close substitute, among others in their pricing decisions, may have resulted to the minding up of several small scale manufacturing firm (SSMF) in Nigeria. 2. It has been shown in accounting literatures that profit planning is a potential tool for achieving profit objectives and efficiency. Which small scale manufacturing firms seems to ignore the use of profit planning (or budget) in their operations. This has led to far reaching problem such as huge unforeseen operating cost as well as shortages in good financial and human resources. 3. Most importantly, the problem that stringated this study is the knowledge gap, that is, it looks as if small scale manufacturing firms are not aware that pricing policy and profit planning impact positively on profit performance.
OBJECTIVES OF THE STUDY:
This research is aimed at achieving the following objectives.
(i) To determine if pricing decision (s) can make an impact on a firm’s profit and efficiency. (ii) To investigate if profit planning (or budgeting) can result in cost reduction and increased profit performance.
BACKGROUND OF THE STUDY
Since the conclusion of the civil war, the Nigerian economy has been very volatile. Following t...
Background to the Study
The text of Luke 16:19-31, the parable of the rich man and Lazarus (Λάδα&rho...
Abstract
This research work is aimed at evaluating the effectiveness of the radio advertisements on family planning prog...
ABSTRACT
This study examined the profitability of layers production in Esan North East and Ovia North East L.G.A’s...
Abstract: This research explores the impact of early childhood education (ECE) on language...
ABSTRACT
The main aim of the research project dwells on Globalization and Economic Development in Nigeria an Assessment...
ABSTRACT: The Impact of Career Academies on Vocational Student Outcomes is a vital area of research for understanding their role in enhancing...
Background to the Study
One of the most significant occurrences of the 20th century is the invention of the Internet an...
ABSTRACT
Research project examined the significance of accounting standard (SAS) in the preparation of financial stateme...
Abstract
Streetlights are usually lit during all dark hours even though vehicles or other objects are not using the road. Instead of wast...