THE EFFECT OF COST ACCOUNTING TECHNIQUES ON PERFORMANCE OF SMES

1.3   Purpose  of the Study

The purpose of these study is to examine the effect of cost accounting techniques on performance of SMEs  in selected SMEs firms in Port Harcourt. Specific objectives include, to:

i.      To investigate the types of accounting records being kept and maintained by SMEs.

ii)     To evaluate factors hindering Cost accounting Techniques in SMEs in Port Harcourt.

iii.    To investigate the extent to which accountinginformation is being used in measuring financialperformance by SMEs.

1.4   Research Questions

i.      What are the types of accounting records being kept and maintained by SMEs?

ii)     What are the factors hindering Cost accounting Techniques and SMEs in Port Harcourt.

iii.    How does accounting information being used in measuring financial performance by SMEs in Port Harcourt?

1.5   Research Hypotheses

HO1.  There is no significant relationship between types of accounting records being kept and maintained by SMEs.

HO2   There is no significant relationship between the factors hindering Cost accounting Techniques and SMEs in Port Harcourt.

HO3   There is no significant relationship between accounting information being used in measuring financial performance by SMEs in Port Harcourt.

1.6   Significance of study

The effect of Cost Accounting Techniques  and performance Small and Medium Enterprise development has been an area of intense research both in practice and academia. This work is to prove helpful to existing and potential entrepreneur of SMEs since this study lends assistance in strategic effect of sources of finance in the performance of a business in order to plan ahead. The research work could also serve as a source of future reference to future researchers who may find it helpful in carrying out a research work of similar nature or related topic.

This empirical investigation of SMEs is therefore a significant contribution to existing literature. Furthermore, the study would  provides evidence on the extent to which Rivers state Small and Medium Enterprise are accounting accommodating in readiness for gaining strategic competitive advantages in their businesses.

The study would also provides uniqueness of small and medium scale businesses call for careful consideration in the design of accounting systems. Small and medium scale enterprises are a vast  majority of businesses found in variety of primary and intermediate production of the economy.

1.7   Scope of the Study

The general scope of this study covers Cost Accounting Techniques and performance Small and Medium Enterprise. The geographical scope is Rivers State of Nigeria. The study will be limited to selected SMEs in Port Harcourt.

1.8    Definition of Terms

Accounting: The bookkeeping methods involved in making a financial record of business transactions and in the preparation of statements concerning the assets, liabilities, and operating results of a business.

SME:small and medium enterprises) are businesses whose personnel numbers fall below certain limits.

Cost accounting: Is 'the process of accounting for cost from the point at which expenditure is incurred or committed to establishment of its ultimate relationship with cost centres and cost units.

Technique: a way of doing something by using special knowledge or skill

Accounting records are all of the documentation and books involved in the preparation of financial statements or records relevant to audits and financial reviews.

Financial performance: Measuring the results of a firm's policies and operations in monetaryterms