Strategic cost management and competitive advantage in selected Nigerian manufacturing Companies
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Date
2022-12
Journal Title
Journal ISSN
Volume Title
Publisher
Department of Accounting, Modibbo Adama University, Yola.
Abstract
The implementation of cost control systems based on the status quo of cost structure
has continued to have negative effect on the performance of manufacturing firms in
the marketplace. This has led to a situation where firms are neither able to effectively
reduce their costs nor able to deliver products that have competitive values. It is
imperative that firms use cost management systems that have strategic orientation so
that competitive advantage can be achieved. Therefore, this study seeks to achieve:
the examination of the impact of activity - based management on competitive
advantage; evaluation of the effect of life cycle costing on competitive advantage;
and investigation of target costing influence on competitive advantage. The study
used a population of seventy - seven manufacturing firms in Lagos and Ogun States
and sixty – five manufacturing firms sampled. Primary data used were collected via
questionnaire instrument. The method of analysis used was structural equation
modelling. The findings from the study are: Competitive advantage is strongly
influenced by activity- based management; life cycle costing strongly affect
competitive advantage; and Target costing does not affect competitive advantage
strongly. The study concluded that strategic cost management is a strong influence
on competitive advantage. Hence, it is recommended that manufacturing firms
wishing to attain competitive advantage should implement activity - based
management and life cycle costing.
Description
Keywords
Activity-based management, life cycle costing, target costing and competitive advantage.
Citation
Adigbole, E. A., Abogun S., Adegbola E. A., Oladipo O. A. and Fakile S. (2022). Strategic cost management and competitive advantage in selected Nigerian manufacturing companies. Nigerian Journal of Accounting and Finance, 14(2), 139 – 165.