The Impact Of Costing Techniques On The Profitability Of An Organization (A Study Of Julius Berger Plc, Akamkpa)

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The Impact Of Costing Techniques On The Profitability Of An Organization (A Study Of Julius Berger Plc, Akamkpa)

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PROJECT TOPIC AND MATERIAL ON THE IMPACT OF COSTING TECHNIQUES ON THE PROFITABILITY OF AN ORGANIZATION (A STUDY OF JULIUS BERGER PLC, AKAMKPA)

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  • Name: The Impact Of Costing Techniques On The Profitability Of An Organization (A Study Of Julius Berger Plc, Akamkpa)
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CHAPTER ONE

BACKGROUND OF THE STUDY

1.1     Introduction

Many business or organization depends largely on its costing technique as a major factor for increase in its profitability if it has negative effect. It is possible for the company to come to a close, that is breakdown or closure, it is very important for a company to examine the type and kind of costing technique which will favour the business or organization depending on the type of business carried out. Costing technique plays a vital role in the profitability of any construction company or firm as the case maybe. Its impact is felt mainly on the firm but also transferred to other sides of the work as it result in either a high profit margin, low profit margin or even loss.

The most important thing here is to trace cost to its unit and when appropriate, using the right method or type of costing technique. This result to normal flow of business for the firm or company to utilize its resources and yield good result.

Historical Background

Julius Berger Plc first came to Lagos Nigeria before it began to diversity, it port folios and it growth started in parallel to the development of Nigeria. Subsequently, the company’s structure also continued to develop in 1970, Julius Berger’s legal structure was transformed into a Private Limited Company (LTD) later the company evolved into a Public Limited Company (PLC) and it shares became listed on the stock exchange in 1991, attracting strong Nigerians, shareholders who hold the majority of the company share. Throughout this time, Julius Berger’s role in the development of Nigeria was also evolving, proven to be a company that consistently delivered reliable solutions. Julius Berger’s became a pivotal partner in the building of Nigeria’s new capital, Abuja. This is not to mention construction of key roads, railways ports and lams which are all part f the company’s portfolio.

Towards the end of the decade Julius Berger’s head office relocated to Abuja, while key operational hubs were maintain throughout Nigeria during this time Julius Berger completed its first major oil and gas industry project, resulting in a significant expansion of the company’s service portfolio. Today, Julius Berger maintains its role, a partner in Nigeria progress and is listed as Nigeria’s leading Construction Company (Business World Magazine 2010).

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