Cost Management and Corporate Performance in Quoted Manufacturing Companies in Nigeria

This research work studied the effect of Cost Management on performance of manufacturing companies in Nigeria. The study sought to examine some best practices in the management of cost management and their influence on performance of manufacturing companies taking into account the unique attributes of the Nigerian economy. This Study is predicated on the portfolio theory, resource based view theory and efficient structure theory. Secondary data source was explored in presenting the facts of the situation. The secondary data were obtained from annual reports and relevant literatures among other. Data were tested using the Ordinary Least Square Linear Regression model.From the financial reports of companies, information concerning direct material cost, direct labour cost and production overhead(independent variables) and operating profit(dependent variable) of listed companies in Nigeria were extracted. The result shows that Shareholders' Funds positively relate to profitability and significant at 5 percent and that the Total Asset also positively relate to profitability at 5 percent level of significance. This study shows that cost management in manufacturing companies have a significant impact on profits generated from Production Operations. The study concluded that an efficient cost Management has significant influence on profitability. The study then recommends among others, that Company policy makers and transaction advisors should be keen on making cost management policies to be applied since they greatly impact on financial performance of the company