Effectiveness of cost containment measures: the case of Harry Gwala District Municipality
- Authors: Lungwengwe, Neziswa
- Date: 2021-04
- Subjects: Activity-based costing , Cost accounting , Managerial accounting
- Language: English
- Type: Master's theses , text
- Identifier: http://hdl.handle.net/10948/51765 , vital:43370
- Description: The primary research objective of this case study was to understand the effectiveness of cost containment measures implemented by all departments at Harry Gwala District Municipality. The case study also explored factors that may have contributed to the implementation of cost containment measures to ensure that the municipality spends funds on essential items and avoids unauthorised expenditure. A case study with fourteen (14) participants was chosen in order to focus on a particular area that the researcher could easily monitor. The researcher mixed qualitative and quantitative research designs to maintain the strengths and improve the weaknesses in both designs. Audited Annual Financial Statements and approved budgets were analysed to assess the effectiveness of cost containment measures. The study found that while employees were aware of their roles and responsibilities, it is safe to say that they did not follow procedures to ensure that costs were maintained. The results of the study showed that the Municipal Public Accounts Committee (MPAC) had no financial background. There was generally no change in the behaviour of employees as far as cost containment measures were concerned. The current repairs and maintenance budget was far below the norm of 8% of the carrying value of municipal assets and the municipality only budgeted between 2 – 3% per year for the assets with a carrying value of about R2.3 billion. , Thesis (MBA) -- Faculty of Business and Economic Sciences , Business Administration, 2021
- Full Text:
- Date Issued: 2021-04
- Authors: Lungwengwe, Neziswa
- Date: 2021-04
- Subjects: Activity-based costing , Cost accounting , Managerial accounting
- Language: English
- Type: Master's theses , text
- Identifier: http://hdl.handle.net/10948/51765 , vital:43370
- Description: The primary research objective of this case study was to understand the effectiveness of cost containment measures implemented by all departments at Harry Gwala District Municipality. The case study also explored factors that may have contributed to the implementation of cost containment measures to ensure that the municipality spends funds on essential items and avoids unauthorised expenditure. A case study with fourteen (14) participants was chosen in order to focus on a particular area that the researcher could easily monitor. The researcher mixed qualitative and quantitative research designs to maintain the strengths and improve the weaknesses in both designs. Audited Annual Financial Statements and approved budgets were analysed to assess the effectiveness of cost containment measures. The study found that while employees were aware of their roles and responsibilities, it is safe to say that they did not follow procedures to ensure that costs were maintained. The results of the study showed that the Municipal Public Accounts Committee (MPAC) had no financial background. There was generally no change in the behaviour of employees as far as cost containment measures were concerned. The current repairs and maintenance budget was far below the norm of 8% of the carrying value of municipal assets and the municipality only budgeted between 2 – 3% per year for the assets with a carrying value of about R2.3 billion. , Thesis (MBA) -- Faculty of Business and Economic Sciences , Business Administration, 2021
- Full Text:
- Date Issued: 2021-04
An evaluation of the role of cost management control systems on organisational performance in public enterprises in Namibia: a case study of the Namibia airports company
- Authors: Shindobo, Teopolina
- Date: 2018
- Subjects: Cost accounting , Activity-based costing , Performance standards -- Namibia -- Evaluation , Organizational effectiveness -- Namibia
- Language: English
- Type: Thesis , Masters , MTech
- Identifier: http://hdl.handle.net/10948/35785 , vital:33812
- Description: The primary goal of this study was to evaluate the role of cost management control systems (CMCS) on organisational performance of public enterprises in Namibia, using Namibia Airports Company (NAC) as a case study organisation. NAC uses the activity based costing (ABC) management control system and is still making losses, the auditor General have recommended that there is a need to evaluate the CMCS used by the NAC and their expenditure. In pursuing the primary objective of the study, four secondary objectives were therefore developed. The first objective was concerned with evaluating the purpose of the CMCSs in organisational decision making process. The second objective was concerned with analysing the effect of CMCSs on organisational performance in public enterprises. This was also achieved through a comprehensive review of literature. The third objective dealt with the design of a suitable methodology. The last objective was concerned with conclusions and recommendations of the study. The study followed a quantitative research methodology and a total of 100 questionnaires were self-administered to the respondents. Sixty-five questionnaires were returned with usable responses and were captured for analysis. Statistical analysis was applied in order to meet the requirements of research methodology as well as record and analyse the research findings. The study used descriptive statistics, reliability statistics, factor analysis and one way variance analysis (ANOVAs). Factor analysis was performed on the elements used to measure the impacts of CMCSs on the organisational performance of the Namibia Airports Company. Four key impacts of CMCSs were identified in this study. ANOVAs were employed as a way of determining significant differences between groups with regard to the factors that were identified. The finding of the study revealed that, the level of employee involvement in cost management activities is relatively weak at Namibia Airports Company despite a higher frequency of using the CMCSs. There is a significant effect on financial performance of the organisation as a result of employing CMCSs. The significant impacts of CMCSs on the organisational performance of the Namibia Airports Company include opportunities for improving financial performance management, efficiency in service delivery, and strategic decisions.
- Full Text:
- Date Issued: 2018
- Authors: Shindobo, Teopolina
- Date: 2018
- Subjects: Cost accounting , Activity-based costing , Performance standards -- Namibia -- Evaluation , Organizational effectiveness -- Namibia
- Language: English
- Type: Thesis , Masters , MTech
- Identifier: http://hdl.handle.net/10948/35785 , vital:33812
- Description: The primary goal of this study was to evaluate the role of cost management control systems (CMCS) on organisational performance of public enterprises in Namibia, using Namibia Airports Company (NAC) as a case study organisation. NAC uses the activity based costing (ABC) management control system and is still making losses, the auditor General have recommended that there is a need to evaluate the CMCS used by the NAC and their expenditure. In pursuing the primary objective of the study, four secondary objectives were therefore developed. The first objective was concerned with evaluating the purpose of the CMCSs in organisational decision making process. The second objective was concerned with analysing the effect of CMCSs on organisational performance in public enterprises. This was also achieved through a comprehensive review of literature. The third objective dealt with the design of a suitable methodology. The last objective was concerned with conclusions and recommendations of the study. The study followed a quantitative research methodology and a total of 100 questionnaires were self-administered to the respondents. Sixty-five questionnaires were returned with usable responses and were captured for analysis. Statistical analysis was applied in order to meet the requirements of research methodology as well as record and analyse the research findings. The study used descriptive statistics, reliability statistics, factor analysis and one way variance analysis (ANOVAs). Factor analysis was performed on the elements used to measure the impacts of CMCSs on the organisational performance of the Namibia Airports Company. Four key impacts of CMCSs were identified in this study. ANOVAs were employed as a way of determining significant differences between groups with regard to the factors that were identified. The finding of the study revealed that, the level of employee involvement in cost management activities is relatively weak at Namibia Airports Company despite a higher frequency of using the CMCSs. There is a significant effect on financial performance of the organisation as a result of employing CMCSs. The significant impacts of CMCSs on the organisational performance of the Namibia Airports Company include opportunities for improving financial performance management, efficiency in service delivery, and strategic decisions.
- Full Text:
- Date Issued: 2018
A profile of selected enterprises and their adopted cost allocation systems in Nelson Mandela Bay
- Authors: Vellem, Masixole
- Date: 2017
- Subjects: Cost accounting , Budget Business enterprises
- Language: English
- Type: Thesis , Masters , MTech
- Identifier: http://hdl.handle.net/10948/13568 , vital:27239
- Description: Activity-based costing is a cost allocation method which appears to have many benefits when compared to traditional costing systems. However, there is limited academic research demonstrating this superiority. There is thus a need to investigate and profile the characteristics of selected enterprises and their adopted cost allocation systems. The main objective of this study was to profile and compare the characteristics of companies in Nelson Mandela Bay that use the activity-based costing system, versus those using traditional costing methods. The research methodology used for this research study is descriptive and quantitative, using various techniques for data analysis. An electronic internet based questionnaire was distributed to companies and the response automatically recorded for analysis with the help of Nelson Mandela University statistics department. The findings of the empirical study revealed that most (38%) of the respondents use a combination of both activity-based costing and traditional costing methods, followed by traditional costing methods (35%), and purely activity-based costing (27%). Data analysis revealed that companies in construction and manufacturing seemed to prefer activity-based costing over traditional costing methods. The findings raise the question as to whether the preference in cost allocation methods is based solely on the benefits of cost allocation, lack of new knowledge, adaptability within companies, or cost of change versus the benefit.
- Full Text:
- Date Issued: 2017
- Authors: Vellem, Masixole
- Date: 2017
- Subjects: Cost accounting , Budget Business enterprises
- Language: English
- Type: Thesis , Masters , MTech
- Identifier: http://hdl.handle.net/10948/13568 , vital:27239
- Description: Activity-based costing is a cost allocation method which appears to have many benefits when compared to traditional costing systems. However, there is limited academic research demonstrating this superiority. There is thus a need to investigate and profile the characteristics of selected enterprises and their adopted cost allocation systems. The main objective of this study was to profile and compare the characteristics of companies in Nelson Mandela Bay that use the activity-based costing system, versus those using traditional costing methods. The research methodology used for this research study is descriptive and quantitative, using various techniques for data analysis. An electronic internet based questionnaire was distributed to companies and the response automatically recorded for analysis with the help of Nelson Mandela University statistics department. The findings of the empirical study revealed that most (38%) of the respondents use a combination of both activity-based costing and traditional costing methods, followed by traditional costing methods (35%), and purely activity-based costing (27%). Data analysis revealed that companies in construction and manufacturing seemed to prefer activity-based costing over traditional costing methods. The findings raise the question as to whether the preference in cost allocation methods is based solely on the benefits of cost allocation, lack of new knowledge, adaptability within companies, or cost of change versus the benefit.
- Full Text:
- Date Issued: 2017
The rationale of using standard costing in manufacturing organisations in the Eastern Cape when modern alternatives are available
- Authors: Januarie, Xavier Sebastian
- Date: 2016
- Subjects: Manufacturing industries -- Accounting , Managerial accounting , Cost accounting
- Language: English
- Type: Thesis , Masters , MTech
- Identifier: http://hdl.handle.net/10948/6838 , vital:21153
- Description: This paper investigates the rationale of using standard costing in modern manufacturing organisations. Researchers argue that standard costing does not easily fit in with the modern idea of continuous improvement. The benefits and limitations of standard costing and other modern alternative approaches in Eastern Cape manufacturing organisations are examined. Furthermore the factors affecting the accuracy of standards are investigated. Lastly, it is concluded that standard costing is used in Eastern Cape manufacturing organisations and those organisations using standard costing have considered the benefits and limitations.
- Full Text:
- Date Issued: 2016
- Authors: Januarie, Xavier Sebastian
- Date: 2016
- Subjects: Manufacturing industries -- Accounting , Managerial accounting , Cost accounting
- Language: English
- Type: Thesis , Masters , MTech
- Identifier: http://hdl.handle.net/10948/6838 , vital:21153
- Description: This paper investigates the rationale of using standard costing in modern manufacturing organisations. Researchers argue that standard costing does not easily fit in with the modern idea of continuous improvement. The benefits and limitations of standard costing and other modern alternative approaches in Eastern Cape manufacturing organisations are examined. Furthermore the factors affecting the accuracy of standards are investigated. Lastly, it is concluded that standard costing is used in Eastern Cape manufacturing organisations and those organisations using standard costing have considered the benefits and limitations.
- Full Text:
- Date Issued: 2016
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