Documente Academic
Documente Profesional
Documente Cultură
BY
DEPARTMENT OF ACCOUNTANCY
FACULTY OF BUSINESS ADMINISTRATION
UNIVERSITY OF NIGERIA, ENUGU CAMPUS
NOVEMBER 2008
2
BY
DEPARTMENT OF ACCOUNTANCY
FACULTY OF BUSINESS ADMINISTRATION
UNIVERSITY OF NIGERIA, ENUGU CAMPUS
NOVEMBER 2008
3
CERTIFICATION
This is to certify that Obeta, Ngozi Joy is a postgraduate
student in the Department of Accountancy with Registration Number,
PG/MBA/07/46890 has satisfactorily completed the requirements for
project research in partial fulfillment of the requirements for the award
of Masters Degree of Business Administration [MBA] in Accountancy.
. ..
Dr. [Mrs.] R.G. Okafor Dr. [Mrs.] R.G. Okafor
Supervisor Head of Department
Date: .. Date:
4
DEDICATION
ACKNOWLEDGEMENT
ABSTRACTS
TABLE OF CONTENTS
PAGE
Title Page . i
Certification ... ii
Dedication .. iii
Acknowledgement iv
Abstract .. v
Table of Contents . vii
CHAPTER ONE:
1.0. Introduction . 1
1.1 Background of the Study .. 1
1.2 Statement of Problems . 5
1.3 Objectives of the Study ........... 6
1.4 Research Questions . 7
1.5 Statement of Hypothesis . 8
1.6 Significance of Study 8
1.7 Scope of the Study 9
1.8 Limitations of Study .. 9
1.9 Definition of Terms 10
References 11
CHAPTER THREE:
3.0 Research Design and Methodology .. 53
3.1 Sources of Data 53
3.1.1 Primary Data . 53
3.1.2 Secondary Data 53
3.2 Method of Investigation .. 54
3.3 Population of the Study . 55
3.4 Determination of Sample Size.. 55
3.5 Analytical Techniques 56
9
CHAPTER FOUR:
4.0 Data Presentation and Analysis . 57
4.1 Analysis of Responses 57
4.2 Test of Hypothesis 64
CHAPTER FIVE:
5.0 Summary of Finding, Recommendations,
Conclusions and Suggestion for Further Study 73
5.1 Summary of Findings .. 73
5.2 Recommendations .. 75
5.3 Conclusion 76
5.4 Suggestions for Further Study .. 77
Bibliography . 78
Appendix .. 80
10
CHAPTER ONE
INTRODUCTION
1.1 BACKGROUND OF THE STUDY
Cost Volume Profit analysis is a useful tool in understanding
the inherent relationship between Cost, Volume of operation and
profit. Don and Jack [1991:223] described Cost Volume Profit
analysis as a method of estimating how changes in unit variable
cost, Unit Sales Price, Total Fixed Cost per Period, Sales Volume
and Sales mix affect profit.
Jhigan and Stephen [2007: 653] defined Cost Volume Profit
analysis as a vital importance in determining the practical application
of cost function, i.e. function of three factors; Sales Volume, Cost and
Profit. It aims at classifying the dynamic relationship existing
between total cost and sale volume of a company. Hence it is also
known as Break-Even Analysis. It helps to know the operating
condition that exists when a company breaks-even, that is when
sales reach a point equal to all expenses incurred in attaining that
level of sales.
Jack, Robert and Williams [1988:129130] also recognized that
Cost Volume Profit analysis evaluates the relationship among
these interacting variables and the effect the changes in these
variable have on an organizations profits. The analysis proceeds on
the basis of cost in an organization and the profit. In other words, the
inter-play of cost and quantity enables the organization observes its
profit motive.
This inter-play follows a regular pattern or a steady state [i.e. at
equilibrium].
11
REFERENCES
Richard, M.S. & F.C. Wai [1991], Managerial Accounting Method &
Meaning, Chapman & Hill, London: 109, 3rd Edition.
CHAPTER TWO
LITERATURE REVIEW
three different ways in which cost behaves viz: Variable, fixed and
mixed or semi-variable.
[a] Variable Cost: It is also referred to as direct cost. These are
the cost of raw materials and the direct cost of converting the raw
materials. The cost increases or decreases in a proportionate manner
but arbitrarily. These are costs that vary in total accounting to
changes in output. Example of Variable Cost includes: direct labour,
material, energy costs, packaging sales commissions, etc.
The behaviour of total cost with respect to relevant range of
output is shown in a table and graph form.
Table 2.1 Variable Cost schedule
ITEM IN UNITS Q COST PER UNIT [N] TOTAL COST [N]
1 10 10
10 10 100
20 10 200
30 10 300
400
300
200
100
0 10 20 30 40
Figure 2.1: Variable Costs, Graph
Quantity [volume]
22
[b] Fixed Cost: It is Cost that does not vary in total amount as sales
volume or the quantity of output changes over some relevant range of
output. For as long as output changes, that is increase or decrease
within these relevant ranges, there will not be additional fixed cost.
For this reason, this cost does not change with changes in output
within the relevant, range rather it shifts within that range. Example of
Fixed Costs includes: Rent depreciation, Fixed Salaries, Insurance
etc
TABLE AND DIAGRAMATICAL PRESENTATION OF FIXED COST
Table 2.2: Fixed Cost schedule
ITEM IN UNITS Q COST PER UNIT [N] TOTAL COST [N]
1 1000 1000
10 100 1000
20 50 1000
30 25 1000
N
1000 Fixed Cost
Total Cost
0 Quantity
1 10 20 30 40
Figure 2.2: Fixed Cost Graph
Fixed Costs occurs as long as the selling price per unit exceeds the
Variable Cost per unit. This helps to explain why some firms will
operate a plant even when sales are temporarily depressed, that is to
provide some increment of revenue towards the coverage of Fixed
Cost.
[c] Mixed Cost or Semi-Fixed or Semi-Variable Cost refers to cost
that are neither strictly fixed nor strictly variable. It will be strictly fixed
and at a point, it will be variable and it will be strictly variable and at a
point it will be fixed. It is difficult to analyze mixed
cost but in doing so, add the total fixed cost and trace that point up to
the point where it varies and add to that total variable.
N
cost
This shows that for the firms to break even, A firm have to sell
1,667 radio sets, B firm will have to sell 1,400 radio sets, while C
firms will have to sell 1,417 radio sets.
Total sales
revenue
400
Total sales revenue
BEP Profit
and Total Cost
states the amount by which sales can drop before losses begin to be
incurred in an organization.
The formula for its calculation:
Total Sales Breakeven Sales = Margin of Safety
It can also be expressed in percentage form. This percentage is
obtained by dividing the margin of safety [ms] in Naira terms by total
sales.
MS in Naira = MS in percentage
Total Sales
It can also be expressed in terms of units of product [if a
company is a single product firm] by the formula:
MS in Naira
Unit Selling Price
reason, it is considered that the wider the margin of safety, the more
comfortable the firm will be.
Mathematically: Margin of Safety + Contribution Margin = Profit
He also observed that margin of distress which means the
amount of additional volume that must be achieved before the
enterprise wipes out all losses and breakeven measure the amount of
unit and Naira Sales Volume respectively, that must be achieved
before the enterprise get out of its distress.
When a firm finds itself producing at a point below the
breakeven point, the firm must be making a loss; in that case, we say
that the firm is in distress. It is possible to measure the extent of
distress. It is the difference between the actual output of the firm
[which is below the BEP] and the breakeven point. It shows by how
much output must increase before the entire loss will be wiped out
and the firm break even.
The margin of the firm in distress will do well to keep the margin
of distress in focus this way he can chase it as a target.
margin which is the difference between sales and total cost of goods
sold [including fixed cost]. The relevance of the contribution margin is
that under certain short term conditions it becomes critical for
management to know what productive effort are making towards the
recovery of those costs which, because they are fixed, are known to
be unaffected by changes in production levels. These conditions are
very many indeed and include decisions to drop product lines,
change prices, choose alternative product route etc. also under
condition where some resources impose constraints on decision by
reason of their importance or relative scarcity, the contribution
approach to the decision is helpful. Under any or all of these
conditions [mainly short-term] fixed cost largely unaffected and are,
therefore, unimportant in making the decision.
Where sales and variable costs are determined on unit basis
the contribution margin, which is then per unit, now conforms to what
the economics refer to as marginal income, in which case the
optimum volume of production is determined at where marginal cost
and marginal revenue are equal, and the price at which this volume is
obtained is the optimum price.
Nweze [200:161] also stated that the assumptions underlying
the contribution margin concept includes:
[a] The manufacturer has only one source of income
[b] Total revenue that the trader will make will be equal to the
number of items he sold multiplied by price of each item.
Mathematically:
Let R = Total revenue
r = Revenue per unit/price
41
q = quantity
Note that, C = V + F - - - [I]
Where C = Total Cost V= Variable Cost and F= Fixed Cost
V = Vq - - - - - - - - - [2]
Where v = Total Variable Cost, v= Variable cost per unit and
q = quantity per unit
Then R = rxq= rq - - - [3]
Where R = Total revenue, r revenue per unit and
q = quantity per unit.
This implies that total revenue must be large to recover cost
[both fixed and variable] and make his profit
R = C + P _ - - - [4]
Substitute for C [recall that C = V + F]
R = V + F + P - - - [5]
This implies that our R must be large enough to recover our
Variable Cost, fixed cost and then make profit.
Taking away V from both sides
R - V + F + P - - - [6]
This implies that if we deduct our Variable Cost from total
revenue, we have a residue and the residue will be enough to recover
our fixed cost and then make profit.
Then R - V is the contribution margin.
Nweze [lecture note] also stated that the contribution margin is
an important decisional concept in business. Its measure as the
difference between total revenue and total variable cost. However,
especially in merchandising firm [i.e. buying and selling firm] it does
not occur in toto at the beginning. Its rather a margin contained within
42
the price of the product. The accumulation of this margin per unit into
the total units achieved equals the total cumulative margin. The
margin provides a fund for achieving two important business
objectives.
[a] To recover fixed cost which are recoverable in the long-run.
[b] To meet the profit motive
The contribution margin is a concept which provides an
inevitable tool for analysis of a host of business decisions. The
decisional situations include, pricing decision, decision to make a
product component within or to buy it from outside supplier, decision
to sell a by product or joint product now or to process it further,
decision to replace an existing equipment or not, decision to embark
on sales promotion or not, decision to accept a special sales order or
not, decision with scarce resources etc.
In all these decision the accountant is seeking to discover the
relative impact of the alternatives on the total contribution margin.
Generally, the accountants will advice that decisions make a positive
impact on the total contribution margin, that is that increase in the
total contribution margin are worthy alternatives. It follows therefore,
that the higher the positive impact of the contribution margin, the
more attractive that alternative will be.
He further said that the concept of contribution margin appears
to be indigenous to most African cultures where haggling [bargaining]
is the preferred method of agreeing on a price among
parties. For the seller with the knowledge of his Variable Cost, his
objective in the haggling process is to obtain from that particular
buyer as high a unit contribution margin as possible in the
43
can any profit is made at all. It is only by achieving volumes [of sales]
that these targets can be attained.
To improve performance, management should focus its
attention on the contribution margin. Once revenue outstrips Variable
Costs, there is a contribution made to this fund from which static
fixed cost and profits are satisfied.
which would reduce Variable Costs by N25 per oven. However, the
sales manager products that the lower overall quality would reduce
sales to only 350 ovens per month. Should the change be made?
Solutions:
The N25 decrease in Variable Costs will cause the contribution
margin per unit to increase from N100 to N125.
N
Expected total contribution margin
350 ovens x N125 43750
Present total contribution margin
400 ovens x N100 40000
Increase in total contribution margin 3750
Yes, the less costly components should be used in the
manufacture of the ovens. Since the fixed costs will not change, net
income will increase by the N3750 increase in contribution margin.
[c] Change in Fixed Cost, Sales Price and Sales Volume
Refer to the original data. Assume again that Company x is
selling 400 ovens per month. To increase sales management would
like to cut the selling price by N20 per oven and increase the
advertising budget by N15000 per month. Management feels that if
these two steps are taken, unit sales will increase by 50 percent.
Should the change be made?
47
Solution:
A decrease of N20 per oven in the selling price causes the unit
contribution to decrease from N100 to N80.
N
Expected total contribution margin
400 ovens x 150% + N80 48,000
Present total contribution margin
400 ovens x N100 40,000
Increase in total contribution margin 8000
Change in Fixed Cost:
Less incremental advertising expense 15000
Reduction in net income [7000]
No, the change should not be made
[d] Change in Variable Cost, Fixed Cost and Sales Volume
Refer to the original data. Assume again that Company x
currently selling 400 ovens per month. The sales manager would like
to place the sales staff on a commission basis of N15 per oven sold
rate than on flat salaries that now total N6,000 per month. The sales
margin sales by 15 percent. Should the change be made?
Solution:
Changing the sales staff from a salaries basis to commission
will affect both Fixed and Variable costs. Fixed Cost decrease by
N6000 from N35000 to N29000. Variable Cost increase by N15 to
N165 and the unit contribution margin decrease from N100 to N85.
N
Expected total contribution margin
400 ovens x 115% xN85 39,100
48
[d] Revenue is Linear; that is, selling price does not change
over the Range of Activity
This is not necessarily so, sometimes, economic factors require
that the selling price be changed. For example, competition may
require that management lower the selling price or management may
decide to change the selling price in order to increase volume.
we assume that inventory levels do not change, so that all fixed Costs
are subtracted from the contribution margin in arriving at net income.
Cost Volume Profit analysis is only as valid as the
assumptions that underline it. Management must consider these
basic assumptions. To the extent that any assumption is not valid in a
specific situation, management must adjust its data to meet the
realities of the situation.
Cost Volume Profit analysis is a useful technique for
management. It must be remembered, though that appropriate
information, management can have more confidence in a decision
based on the data that result from Cost Volume Profit analysis.
[a] Errors affecting the contribution margin e.g. Price Variable Cost
and Production/Sales mix prediction errors.
[b] Errors not affecting the contribution margin e.g. fixed costs.
Sensitivity analysis involves simply re-working the problem
allowing for the error, obtaining fresh results [and if desired
comparing this new result with the basic feasible solution, thereby
generating the cost of prediction error.
The technique of sensitivity analysis has often been used to
build in some dynamism and flexibility into this important planning
tool. The technique allows a consideration of what the combined
52
Decision:
Emenite will save N3.00 per unit or a total of N300,000 if it
made the component rather than buy it. This is because; the fixed
factory overhead of N4.00 irrelevant to the decision since it will be
incurred whether or not the component is made within.
lustration III:
Suppose Emenite makes two products Duraceil and Emlux with
the following data:
The company can sell all the unit produced of Duraceil and
Emlux. Which product should the enterprise produce?
Solution:
Table 2:8 Emenite
Analysis of Optimum product mix
DURACEIL EMLUX
Unit produceable per hour 3 1
Contribution margin per unit N8 N18
Contribution margin per unit of N24 N18
limiting factor [hour] UCM x UPH
Total contribution in 1000 hours N24000 N18000
Source: An unpublished material from Emenite Nig. Ltd.
62
Decision:
Although Emlux has a higher contribution margin per unit, it has
a lower contribution margin per unit of limiting factor [hours] than
Duraceil. It is better, therefore, to employ the limited time in producing
only Duraceil product.
63
REFERENCES
Ezeugwu, V.U. [1999], Intermediate Accounting, Cost and
Management, Hugotez publication, Enugu:1, 1st Ed.
CHAPTER THREE
Enugu and Hardis & Dromedas Ltd., Hardis & Estate, Airport Road,
Emene, Enugu.
Emenite consist of top officials of some departments and the
workers in the production unit and sales unit, which totals one
hundred and fifty five [155] workers.
While Innoson Nigeria Ltd., consist of top officials of some
departments and the workers in the production unit and sales unit,
which totals ninety five [95] workers.
Finally, Hardis & Dromedas Ltd., consist of 60 workers in both
the production and sales unit. The production of these companies is
three hundred and ten [310] workers.
S = 310
1 + 310[0.1]
S = 310
1 + 3.1
S = 310
4+1 = 75.6
= 76 workers.
CHAPTER FOUR
The table shows that 20 or 33.33 of them have the view that it
is make or buy decision that they take to achieve maximum profit, 28
or 46.67 says that it is add or drop decision, 10 or 16.67 agree that
their firm take scarce resources while the remaining 2 say it is all of
the above options.
Table 4.1.4: The firms profit margin for the last five years.
OPTIONS NO OF PERCENTAGE [%]
RESPONSES
At breakeven 15 25
Above breakeven 45 75
Below breakeven - -
Total 60 100%
Source: Data from field survey.
The table represents how their profit margin is for the last five
years. The respondents to at breakeven are 15 which represent 25%.
45 respondents indicated that it is above breakeven which represent
75% while no respondent adopted below breakeven.
Table 4.1.5. Is inflation in the country affects the production and
quality of their product?
OPTIONS NO OF PERCENTAGE [%]
RESPONSES
Yes 45 75
No 15 25
Total 60 100
Source: Data from field survey.
72
Table 4.1.13.
The response as to the method of Cost Volume Profit
analysis their company use.
OPTIONS NO OF PERCENTAGE [%]
RESPONSES
Equation Method 20 33.33
Graphical Method -
None of the above 40 66.67
Total 60 100
Source: Data from field survey
Table above shows that 20 or 33.33% of the respondents says
that they use equation method while the remaining 40 or 66.67 say
none of the above method is being used.
Test of Hypothesis 1
Ho Null Hypothesis:
That high degree of Operating Leverage does not affect Cost
Volume Profit in manufacturing industries.
Hi Alternative Hypothesis:
That high degree of Operating Leverage affects Cost Volume
Profit in manufacturing industries.
78
Recall X2 = [0 - E]2
E
Operative Assumptions
Level of significance = 5%
Determination of Expected Frequency
The expected frequency of each cell is computed and reflected
in the contingency table thus:
Formula:
E[RC] = FR x FC
N
Where: E[RC] = Expected frequency of the cell.
FR = Total row frequency
FC = Total column frequency
N = Total frequency
Table 4.2.1.
Contingency Table [3X2]
RESPONDENT RESPONSE TOTAL
Yes No
Emenite Nig. Ltd. 25 5 30
[20] [9.50]
Innoson Nig. Ltd. 9 9 18
12.30] [5.70]
Hardis & Dromedas 7 5 12
[8.20] [3.80]
Total 41 19 60
R = Number of rows
C = Number of columns
:. df = [3 1] [2 1]
[.2] [1]
df = 2
Decision Rule
Reject Null Hypothesis if the critical Value is less than
calculated Value.
Computation of the Chi Square:
X2 = [0 - E]2
E
X2 = [25 20]2 x [5 9.50]2 x [9 2.30]2
20 9.50 12.30
2
x [9 5.70] x [7 8.20]2 x [5 3.80]2
20 9.50 12.30
Decision
Since the calculated value is high than the critical value, we
reject the Null hypothesis. This implies that high degree of operating
Leverage affect Cost Volume Profit in manufacturing Industries.
81
Test of Hypothesis II
Ho: Cost Control [i.e. Cost Volume Profit] technique will not help
to develop and expand manufacturing industries as well as not
resulting to high profitability.
Hi : Cost Control [i.e. Cost Volume Profit] technique will help to
develop and expand manufacturing industries as well as
resulting to high profitability.
Recall X2 = [0 - E]2
E
Operative Assumptions
Level of significance = 5%
Determination of Expected Frequency
Row 1 cell 1 [E] = 30 x 42 = 21
60
Row 2 cell 2 [E] = 30 x 18 = 9
60
Row 2 cell 1 [E] = 18 x 42 = 12.60
60
82
Table 4.2.2
Contingency Table [3 x 2]
RESPONDENT RESPONSE TOTAL
Yes No
Emenite Nig. Ltd. 26 [21] 4 [9] 30
Innoson Nig. Ltd. 10 8 [5.40] 18
[12.60]
Hardis & Dromedas 6 [3.40] 6[3.60] 12
Total 42 18 60
Decision Rule
Reject Null Hypothesis of the critical value is less than
calculated value.
83
2
+[8 5.40] + [6 8.40]2 + [6 3.40]2
5.40 8.40 3.40
:. X2 = 8.44
Decision:
Since the calculated value is higher than the critical value, we
reject the Null hypothesis. This implies that Cost Control [i.e. Cost
Volume Profit] techniques will help to develop and expand
manufacturing industries as well as resulting to high profitability.
Recall: X2 = [0 - E]2
Operating Assumptions
Level of significance = 5%
Table 4.2.3
Contingency Table [3 x 3]
RESPONDENT RESPONSE TOTAL
Yes No No Idea
Emenite Nig. Ltd. 26 3 1 30
[21] [4] [5]
Innoson Nig. Ltd. 14 1 3 18
[12.6] [2.4] [3]
Hardis & Dromedas 2 4 6 12
[8.4] [1.6] [2]
Total 42 8 10 60
85
Decision Rule:
Reject Null Hypothesis if the critical value is less than the
calculated value.
X2 = 22.05
Decision:
Since the calculated value is higher than the critical value, we
reject the Null hypothesis. This implies that with high cost of goods
86
CHAPTER FIVE
5.2 RECOMMENDATIONS
The study has afforded the researcher the opportunity to make
the following recommendations, Innoson Ltd, should on the short run
increase the production of Helmet and other product to meet the
demand of their customers. This will guarantee a rise in the daily
profit accruing to the company from the sale of their products.
Since the demand for the above mentioned product are high
relative to the demand to their other products. There will be savings in
the cost of production because fixed cost is not restricted to any unit
of production. In other hand Hardis and Dromedas should also learn
the concept of Cost Volume Profit analysis. They should increase
the quantity of their product so that they will maximize their profit. The
Industry should avoid the wastage of raw material during production
process. These will also reduce cost of production and increase
profit.
Emenite Company should practice the batch costing in its true
meaning for effective control. This means that cost should be
ascertained, analyzed and controlled among other characteristics at
each batch level. With adequate Cost Control, it will go a long way to
reducing the production cost of the company and increase profit. The
company should intensify its local raw material substitution drive so
as to reduce the imported content of its raw materials.
90
5.3 CONCLUSION
Enterprises that must survive, and grow in these times must
consciously plan to do so. As the clichs goes, a failure to plan for
success is a plan to fail. While indeed planning is important for
success. It is more important that plans address the very pertinent
factors that influence success. For no matter how serious
management may be in its planning efforts, it may still not compete
effectively today if its decisional tools are archaic and antiquated.
Management should then realize that good analysis does not
necessarily have to follow the traditional classification of costs into
production and non-production and of profits into gross or net.
The modern tool, important in todays decision analysis requires
a different understandably of these relationships: relevant and
irrelevant items; variable and fixed cost; avoidable and unavoidable
cost etc.
It is important to emphasize the fact that the Cost Volume
Profit analysis in an organization is a necessity for such an
organization to know if they are surviving and growing much as we
agree that for an organization to be profitable, it must seek to obtain
as much revenue as possible. A well organized industry should have
an effective costing system so that proper costing of its material,
labour and overheads can be easily effected, so as to determine the
actual cost of production based on the analysis carried out.
91
BIBLIOGRAPHY
Don, R. and Jack, G. [1991], Managerial Accounting, Houghton
Miffin Coy, USA: 223, 2nd Edition.
QUESTIONNAIRE
University of Nigeria,
Faculty of Business Administration
Department of Accountancy
Dear Sir/Madam,
This is purely academic exercise and you are assured that all
information given will be treated confidentially.
Yours faithfully,
INSTRUCTION
iii How many years have you been with the company
Yes No
Yes No
3. If yes in 2 above, what product mix decision to your firm take to
achieve maximum profit?
[a] Make or buy decision
[b] Add or drop decision
[c] Scarce resources
96
[a] At breakeven
[b] Above breakeven
[c] Below breakeven
5. Does inflation in the country affect the production and quality of
your product?
Yes No
6. If yes, does the high cost of goods and services depend on the
strategies adopted by the management?
Yes No No idea
7. If there is low production and high demand, does your company
go for loan?
Yes No
Yes No
98
BY
DEPARTMENT OF ACCOUNTANCY
FACULTY OF BUSINESS ADMINISTRATION
UNIVERSITY OF NIGERIA, ENUGU CAMPUS
NOVEMBER 2008
99
BY
DEPARTMENT OF ACCOUNTANCY
FACULTY OF BUSINESS ADMINISTRATION
UNIVERSITY OF NIGERIA, ENUGU CAMPUS
NOVEMBER 2008
100
CERTIFICATION
. ..
Dr. [Mrs.] R.G. Okafor Dr. [Mrs.] R.G. Okafor
Supervisor Head of Department
Date: .. Date:
iii
101
DEDICATION
ACKNOWLEDGEMENT
ABSTRACTS
TABLE OF CONTENTS
PAGE
Title Page . i
Certification ... ii
Dedication .. iii
Acknowledgement iv
Abstract .. v
Table of Contents . vii
CHAPTER ONE:
2.0. Introduction . 1
1.10 Background of the Study .. 1
1.11 Statement of Problems . 5
1.12 Objectives of the Study ........... 6
1.13 Research Questions . 7
1.14 Statement of Hypothesis . 8
1.15 Significance of Study 8
1.16 Scope of the Study 9
1.17 Limitations of Study .. 9
1.18 Definition of Terms 10
References 11
CHAPTER THREE:
3 Research Design and Methodology .. 53
3.1 Sources of Data 53
3.1.1 Primary Data . 53
3.1.2 Secondary Data 53
3.2 Method of Investigation .. 54
3.3 Population of the Study . 55
3.4 Determination of Sample Size.. 55
3.5 Analytical Techniques 56
106
CHAPTER FOUR:
4 Data Presentation and Analysis . 57
4.1 Analysis of Responses 57
4.2 Test of Hypothesis 64
CHAPTER FIVE:
5 Summary of Finding, Recommendations,
Conclusions and Suggestion for Further Study 73
5.1 Summary of Findings .. 73
5.2 Recommendations .. 75
5.3 Conclusion 76
5.4 Suggestions for Further Study .. 77
Bibliography . 78
Appendix .. 80