ASSESMENT OF MANUFACTURING PRODUCT COSTING TECHNIQUES: CASE STUDY OF TWO BISCUITS MANUFACTURING COMPANIES IN ETHIOPIA

Abstract

This research paper was conducted to assess the product costing technique. The objectives of the study were to assess the cost accounting techniques that are being used in biscuits manufacturing companies in Ethiopia. Based on the annual sales run reported by central statistical agency in 2006 there was runked 5 companies from biscuit industries . But because of the fact that many of the them were not willing to provide all the necessary information except two of them namely, Kality Foods Complex and nas foods Plc. The population of this study is two companies who are manufacturing biscut in Ethiopia; Kality Foods Complex and Nas Foods PLC and it spread in their concerned departments. There was Six types of questionnaire for six departments prepared for a total of 18 questionnaires were distributed for the concerned department for the above mentioned biscuits manufacturing companies and all are filled and returned. Interview has been done for two employees from all companies who are responsible and handling for the companies product cost calculation. The study employed descriptive research methods. Data collected through questionnaire were analyzed through quantitative data analysis and presenting by excel tabulation and from interview and primary source were also analyzed and presented through qualitative approach. The result of data analyzed showed that the valuation of product costing is violated from the general accounting principle.