Cost control and financial performance of manufacturing companies in Uganda: a case study of multiple industries and factory, Kampala

Abstract

The study was about the influence of cost control on financial performance in manufacturing companies in Uganda basing on a case study of Multiple Industries and Factory. It was guided by three objectives, i) to examine how cost analysis influences financial performance in Multiple Industries and Factory, ii) to assess how cost allocation influences financial performance in Multiple Industries and Factory, iii) to examine how cost monitoring influences financial performance in Multiple Industries and Factory. The research design for the study was divided in section of research approach, research strategy, research duration and the research classification. The study used a sample size of 68 respondents. Data was collected through primary and secondary sources, then it was edited, coded and cross-checked using Ms. Excel and exported to SPSS for analysis. Findings revealed that Multiple Industries and Factory makes adjustments to the project plans as needed through reducing scope or finding cost effective solutions in order to stay within the approved budget. The stud established that Multiple industries and factory has guidelines for how costs are managed and tracked, as well as establishing protocols for reviewing and approving expenditures and the team responsible for cost monitoring in Multiple industries and factory is not effective in tracking and managing the organisation’s expenses. In recommendation, it is suggested that Multiple Industries and Factory should ensure effective cost control, including good responsibility accounting system, should be established by all business concerns in the company. It is also suggested that collection of costs should be made by each area of responsibility and reports thereon, which should indicate, in monetary terms, the effect of efficiency or inefficiency, given section by section and department by department.