COST ACCOUNTING AS A TOOL FOR PERFORMANCE EVALUATION IN MANUFACTURING COMPANIES (A STUDY OF NESTLE NIGERIA PLC)

ABSTRACT This study investigates the role of cost accounting as a tool for performance evaluation in manufacturing companies, with particular reference to Nestlé Nigeria Plc. In today’s highly competitive industrial environment, effective cost management is critical for sustaining profitability and operational efficiency. The research examines how cost accounting techniques such as standard costing, budgeting, and variance analysis contribute to evaluating organizational performance. A descriptive research design was adopted, and data were collected through questionnaires and secondary financial reports. The findings reveal that cost accounting plays a significant role in enhancing managerial decision-making, controlling operational costs, and improving overall productivity. However, challenges such as inaccurate data recording and lack of skilled personnel were identified. The study concludes that cost accounting is an indispensable tool for performance evaluation in manufacturing firms. It recommends improved staff training, adoption of modern accounting systems, and continuous monitoring of cost structures to enhance performance outcomes.