COSTING MECHANISM AND MATERIAL MANAGEMENT AMONG INDUSTRIAL GOODS SECTOR LISTED ON NIGERIAN EXCHANGE GROUP
Keywords:
Activity Based Costing, Costing Mechanism, Inventory Turnover, Material Management, Process CostingAbstract
The study investigated the effect of costing mechanism on material management among industrial goods sector listed on Nigerian exchange group. Specifically, the study analyzed the effect of activity-based costing and process costing, on inventory turnover rate of listed industrial goods sector in Nigeria. Employing the ex-post facto research design, secondary data from the 2014 to 2024 financial statements of 11 purposively sampled firms listed industrial goods sector from were exposed to data analysis using panel least square regression through the E-views 10 statistical software. Findings made indicates that activity-based costing (ABC) has a significant and positive effect on inventory turnover of listed industrial goods sectors in Nigeria (p=0.0000). Further findings showed that process costing has a significant but negative effect on inventory turnover rate of listed industrial goods sector in Nigeria. (p-value = 0.0000). The study therefore recommended that manufacturing firms should invest in proper ABC infrastructure, including staff training and appropriate software solutions, to accurately allocate overhead costs to specific activities.
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