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
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- Date Issued: 2021-04
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.
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- Date Issued: 2016
Problems encountered with the implementation of an activity-based costing system
- Authors: Konan, Nangan Christian
- Date: 2012
- Subjects: Managerial accounting , Cost allocation
- Language: English
- Type: Thesis , Masters , MTech
- Identifier: vital:8979 , http://hdl.handle.net/10948/d1018653
- Description: The activity-based costing (ABC) system is a cost allocation technique which appears to have many benefits over the traditional costing systems. However, companies that have attempted to implement ABC have encountered various difficulties. Thus, there is a need to investigate the problems faced by companies while implementing ABC. The main objective of this study was to find solutions to overcome the problems encountered by South African companies during the implementation of an activity-based costing system.
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- Date Issued: 2012
Implementing an activity-based costing model
- Authors: Cohen, Howard
- Date: 2004
- Subjects: Activity-based costing , Managerial accounting
- Language: English
- Type: Thesis , Masters , MTech
- Identifier: vital:8970 , http://hdl.handle.net/10948/240 , Activity-based costing , Managerial accounting
- Description: Activity-based costing (ABC) is a forward-looking product costing method. Unlike traditional volume-based approaches, which are historically oriented, ABC concepts guide managers in seeking the best strategies to pursue in the future. This product costing method can be a valuable tool in planning and managing costs not only in the manufacturing area, but also in all aspects of business operations, from product design to distribution. Although its main advantage is its ability to provide more realistic product cost information for financial reporting purposes, use of ABC can lead to a better understanding of the strategic linkages existing between the various cost areas in the organisation. It enables managers to have a holistic view of cost management. ABC was developed to better understand, manage and control the overheads. The brief fundamental of ABC is: Products consume activities, activities consume resources, and resources consume costs. Based upon this fundamental principle, ABC can trace the cost from resources to activities that are consumed by product manufacturing processes as well as from activities to products. ABC investigates the transactions that trigger cost instead of concentrating solely on measures of physical volume or a certain amount of labour hours. Compared to the traditional costing systems, ABC can not only answer how much product cost is but also tell executives the factors triggering costs and the way to manage costs. ABC helps managers make better decisions about product design, pricing, marketing, and mix and encourages continual improvement. Unlike the traditional method, instead of using the single pre-determined overhead rate to absorb the indirect cost to products, ABC uses actual incurred cost to v determine the product cost. By tracing the absorption process of indirect cost, ABC would provide more information to management and help it find better ways to manage costs. However, the cost drivers used in ABC are constants but the cost driver rates are continually changing. ABC still uses predetermined cost drivers so it has the same fundamental problem as the traditional methods for estimating.
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- Date Issued: 2004