EFFECT OF TARGET COSTING ON FINANCIAL PERFORMANCE OF CEMENT MANUFACTURING INDUSTRY IN KENYA
Abstract
In East Africa, Kenya is leading in both cement production and consumption. There are around 8 cement companies in Kenya. Three of these companies are listed at the Nairobi security exchange. Cement companies that are listed at NSE are Bamburi cement, ARM cement limited, East Africa Portland cement limited. Private companies are Mombasa cement, National cement, and Savannah cement. Competition amongst cement manufacturing is getting tough due to higher demand and supply in the real estate industry therefore companies are much interested in assessing financial positions to get or retain higher market share. Thus, this study focused on the effect of target costing on financial performance of manufacturing industry in Kenya. The study used both qualitative and quantitative research method. The target population of the study was 100 middle level management. The study used primary source of data that was collected through questionnaire that consist of structured questions. Quantitative data was collected analyzed through descriptive analysis and SPPSS presentations was presented through percentages, means, standard deviations, and frequencies. The information was displayed by use of frequency tables. The study findings revealed that financial performance of manufacturing industry in Kenya was significantly related with target costing. However, it was also found that target costing had positive influence on performance of cement manufacturing industry in Kenya. The study concluded that Process costing method was vastly used by the cement companies among the cost accounting methods.
Key Words: Costing, Cement Manufacturing
CITATION: Abura, H. N., & Litunya, R. (2022). Effect of target costing on financial performance of cement manufacturing industry in Kenya. The Strategic Journal of Business & Change Management, 9 (4), 12 - 18.
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DOI: http://dx.doi.org/10.61426/sjbcm.v9i4.2387
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