Strategic cost management practices and customer value enhancement in selected quoted manufacturing firms in Lagos and Ogun States, Nigeria
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Date
2022
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Faculty of Management Sciences, Federal University, Dutsin-Ma
Abstract
The pursuance of customers value should be the goal of any manufacturing firm in Nigeria as this is the key to remaining competitive in a competitive environment. Strategic cost management practices can deliver customer value enhancement. Hence, the objectives of this study were to: assess the influence of Activity Based Costing (ABC) on Customer Value Enhancement; examine the effect of Activity Based Management (ABM) on CVE; and evaluate the impact of Life Cycle Costing (LCC) on CVE. Survey research design was employed. Three hundred and eighty - five respondents in seventy - seven listed manufacturing firms in Lagos and Ogun States constituted the population of this study and the sample consisted of three hundred and twenty- five respondents in sixty - five randomly selected manufacturing firms. Questionnaire administration was used in collecting the primary data used. Partial least squares - Structural equation modeling was used in data analysis. The study found that: ABC has positive significant effect on CVE enhancement (β = 0.365, p < 0.01); ABM has positive insignificant influence on CVE (β = 0.084, p > 0.10); and LCC has positive significant impact on CVE (β = 0.395, p < 0.01). It was concluded that strategic cost management practices are relevant for the enhancement of customer value. The study recommended that manufacturing firms in Nigeria should continue to implement strategic cost management techniques to enhance customer value for profitability improvement.
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Keywords
Activity-based costing; Activity-based management; Life cycle costing; Customer value enhancement