Effectiveness of cost containment measures: the case of Harry Gwala District Municipality
- Authors: Lungwengwe, Neziswa
- Date: 2021-04
- Subjects: Activity-based costing , Cost accounting , Managerial accounting
- Language: English
- Type: Master's theses , text
- Identifier: http://hdl.handle.net/10948/51765 , vital:43370
- Description: The primary research objective of this case study was to understand the effectiveness of cost containment measures implemented by all departments at Harry Gwala District Municipality. The case study also explored factors that may have contributed to the implementation of cost containment measures to ensure that the municipality spends funds on essential items and avoids unauthorised expenditure. A case study with fourteen (14) participants was chosen in order to focus on a particular area that the researcher could easily monitor. The researcher mixed qualitative and quantitative research designs to maintain the strengths and improve the weaknesses in both designs. Audited Annual Financial Statements and approved budgets were analysed to assess the effectiveness of cost containment measures. The study found that while employees were aware of their roles and responsibilities, it is safe to say that they did not follow procedures to ensure that costs were maintained. The results of the study showed that the Municipal Public Accounts Committee (MPAC) had no financial background. There was generally no change in the behaviour of employees as far as cost containment measures were concerned. The current repairs and maintenance budget was far below the norm of 8% of the carrying value of municipal assets and the municipality only budgeted between 2 – 3% per year for the assets with a carrying value of about R2.3 billion. , Thesis (MBA) -- Faculty of Business and Economic Sciences , Business Administration, 2021
- Full Text:
- Date Issued: 2021-04
- Authors: Lungwengwe, Neziswa
- Date: 2021-04
- Subjects: Activity-based costing , Cost accounting , Managerial accounting
- Language: English
- Type: Master's theses , text
- Identifier: http://hdl.handle.net/10948/51765 , vital:43370
- Description: The primary research objective of this case study was to understand the effectiveness of cost containment measures implemented by all departments at Harry Gwala District Municipality. The case study also explored factors that may have contributed to the implementation of cost containment measures to ensure that the municipality spends funds on essential items and avoids unauthorised expenditure. A case study with fourteen (14) participants was chosen in order to focus on a particular area that the researcher could easily monitor. The researcher mixed qualitative and quantitative research designs to maintain the strengths and improve the weaknesses in both designs. Audited Annual Financial Statements and approved budgets were analysed to assess the effectiveness of cost containment measures. The study found that while employees were aware of their roles and responsibilities, it is safe to say that they did not follow procedures to ensure that costs were maintained. The results of the study showed that the Municipal Public Accounts Committee (MPAC) had no financial background. There was generally no change in the behaviour of employees as far as cost containment measures were concerned. The current repairs and maintenance budget was far below the norm of 8% of the carrying value of municipal assets and the municipality only budgeted between 2 – 3% per year for the assets with a carrying value of about R2.3 billion. , Thesis (MBA) -- Faculty of Business and Economic Sciences , Business Administration, 2021
- Full Text:
- Date Issued: 2021-04
An evaluation of the role of cost management control systems on organisational performance in public enterprises in Namibia: a case study of the Namibia airports company
- Authors: Shindobo, Teopolina
- Date: 2018
- Subjects: Cost accounting , Activity-based costing , Performance standards -- Namibia -- Evaluation , Organizational effectiveness -- Namibia
- Language: English
- Type: Thesis , Masters , MTech
- Identifier: http://hdl.handle.net/10948/35785 , vital:33812
- Description: The primary goal of this study was to evaluate the role of cost management control systems (CMCS) on organisational performance of public enterprises in Namibia, using Namibia Airports Company (NAC) as a case study organisation. NAC uses the activity based costing (ABC) management control system and is still making losses, the auditor General have recommended that there is a need to evaluate the CMCS used by the NAC and their expenditure. In pursuing the primary objective of the study, four secondary objectives were therefore developed. The first objective was concerned with evaluating the purpose of the CMCSs in organisational decision making process. The second objective was concerned with analysing the effect of CMCSs on organisational performance in public enterprises. This was also achieved through a comprehensive review of literature. The third objective dealt with the design of a suitable methodology. The last objective was concerned with conclusions and recommendations of the study. The study followed a quantitative research methodology and a total of 100 questionnaires were self-administered to the respondents. Sixty-five questionnaires were returned with usable responses and were captured for analysis. Statistical analysis was applied in order to meet the requirements of research methodology as well as record and analyse the research findings. The study used descriptive statistics, reliability statistics, factor analysis and one way variance analysis (ANOVAs). Factor analysis was performed on the elements used to measure the impacts of CMCSs on the organisational performance of the Namibia Airports Company. Four key impacts of CMCSs were identified in this study. ANOVAs were employed as a way of determining significant differences between groups with regard to the factors that were identified. The finding of the study revealed that, the level of employee involvement in cost management activities is relatively weak at Namibia Airports Company despite a higher frequency of using the CMCSs. There is a significant effect on financial performance of the organisation as a result of employing CMCSs. The significant impacts of CMCSs on the organisational performance of the Namibia Airports Company include opportunities for improving financial performance management, efficiency in service delivery, and strategic decisions.
- Full Text:
- Date Issued: 2018
- Authors: Shindobo, Teopolina
- Date: 2018
- Subjects: Cost accounting , Activity-based costing , Performance standards -- Namibia -- Evaluation , Organizational effectiveness -- Namibia
- Language: English
- Type: Thesis , Masters , MTech
- Identifier: http://hdl.handle.net/10948/35785 , vital:33812
- Description: The primary goal of this study was to evaluate the role of cost management control systems (CMCS) on organisational performance of public enterprises in Namibia, using Namibia Airports Company (NAC) as a case study organisation. NAC uses the activity based costing (ABC) management control system and is still making losses, the auditor General have recommended that there is a need to evaluate the CMCS used by the NAC and their expenditure. In pursuing the primary objective of the study, four secondary objectives were therefore developed. The first objective was concerned with evaluating the purpose of the CMCSs in organisational decision making process. The second objective was concerned with analysing the effect of CMCSs on organisational performance in public enterprises. This was also achieved through a comprehensive review of literature. The third objective dealt with the design of a suitable methodology. The last objective was concerned with conclusions and recommendations of the study. The study followed a quantitative research methodology and a total of 100 questionnaires were self-administered to the respondents. Sixty-five questionnaires were returned with usable responses and were captured for analysis. Statistical analysis was applied in order to meet the requirements of research methodology as well as record and analyse the research findings. The study used descriptive statistics, reliability statistics, factor analysis and one way variance analysis (ANOVAs). Factor analysis was performed on the elements used to measure the impacts of CMCSs on the organisational performance of the Namibia Airports Company. Four key impacts of CMCSs were identified in this study. ANOVAs were employed as a way of determining significant differences between groups with regard to the factors that were identified. The finding of the study revealed that, the level of employee involvement in cost management activities is relatively weak at Namibia Airports Company despite a higher frequency of using the CMCSs. There is a significant effect on financial performance of the organisation as a result of employing CMCSs. The significant impacts of CMCSs on the organisational performance of the Namibia Airports Company include opportunities for improving financial performance management, efficiency in service delivery, and strategic decisions.
- Full Text:
- Date Issued: 2018
Time-driven activity-based costing for small to medium manufacturing enterprises in South Africa: an integrated balanced scorecard approach
- Authors: Reynolds, Arthur
- Date: 2018
- Subjects: Activity-based costing , Managerial accounting Small business -- Finance Small business -- South Africa
- Language: English
- Type: Thesis , Doctoral , DPhil
- Identifier: http://hdl.handle.net/10948/35125 , vital:33630
- Description: The failure rate of small to medium enterprises in South Africa is very high. This is problematic as there is a large dependence on the ongoing success of small to medium enterprises from the economy and society. Increasing labour costs and inflationary pressure have contributed to the high failure rates of small to medium enterprises. In addition, the manufacturing sector for small to medium enterprises has showed a decline over recent years. There is thus a need to identify and manage the critical success factors (CSFs) for small to medium manufacturing enterprises. The balanced scorecard (BSC) has been used successfully to manage CSFs. Furthermore, research on time-driven activity-based costing (TDABC) has illustrated that this costing system could be implemented successfully at small to medium enterprises across the world to manage costs, and that the BSC could be used successfully together with TDABC. However, research has shown that implementing a BSC at small to medium enterprises could be challenging. As a result, the theory of constraints (TOC) that can be used to explain the phenomenon of constraints of resources is recognised as the underlying theory for this study. The availability of a generic yet adaptable BSC could potentially enable owners and managers of small to medium manufacturing enterprises to manage the CSFs that together with the TDABC system can lower costs and identify unused capacity. This study has developed and implemented a generic TDABC/BSC costing system by investigating literature and conducting a Delphi study and a case study at a small to medium enterprise specialising in manufacturing. Firstly, it was found that a generic BSC for small to medium manufacturing enterprises could be developed by using a Delphi study to create a BSC template with optional key metrics/key performance indicators (KPIs) to suit different types of manufacturing industries. Secondly, it was demonstrated in a case study that TDABC could still be beneficial for a small to medium manufacturing enterprise if focus is only on a single product. Thirdly, it became evident that the system could be used to manage the TOC. Finally, the case study shows that cost savings could be achieved in small to medium enterprise by using the integrated TDABC/BSC costing system and by that increase the success of the business.
- Full Text:
- Date Issued: 2018
- Authors: Reynolds, Arthur
- Date: 2018
- Subjects: Activity-based costing , Managerial accounting Small business -- Finance Small business -- South Africa
- Language: English
- Type: Thesis , Doctoral , DPhil
- Identifier: http://hdl.handle.net/10948/35125 , vital:33630
- Description: The failure rate of small to medium enterprises in South Africa is very high. This is problematic as there is a large dependence on the ongoing success of small to medium enterprises from the economy and society. Increasing labour costs and inflationary pressure have contributed to the high failure rates of small to medium enterprises. In addition, the manufacturing sector for small to medium enterprises has showed a decline over recent years. There is thus a need to identify and manage the critical success factors (CSFs) for small to medium manufacturing enterprises. The balanced scorecard (BSC) has been used successfully to manage CSFs. Furthermore, research on time-driven activity-based costing (TDABC) has illustrated that this costing system could be implemented successfully at small to medium enterprises across the world to manage costs, and that the BSC could be used successfully together with TDABC. However, research has shown that implementing a BSC at small to medium enterprises could be challenging. As a result, the theory of constraints (TOC) that can be used to explain the phenomenon of constraints of resources is recognised as the underlying theory for this study. The availability of a generic yet adaptable BSC could potentially enable owners and managers of small to medium manufacturing enterprises to manage the CSFs that together with the TDABC system can lower costs and identify unused capacity. This study has developed and implemented a generic TDABC/BSC costing system by investigating literature and conducting a Delphi study and a case study at a small to medium enterprise specialising in manufacturing. Firstly, it was found that a generic BSC for small to medium manufacturing enterprises could be developed by using a Delphi study to create a BSC template with optional key metrics/key performance indicators (KPIs) to suit different types of manufacturing industries. Secondly, it was demonstrated in a case study that TDABC could still be beneficial for a small to medium manufacturing enterprise if focus is only on a single product. Thirdly, it became evident that the system could be used to manage the TOC. Finally, the case study shows that cost savings could be achieved in small to medium enterprise by using the integrated TDABC/BSC costing system and by that increase the success of the business.
- Full Text:
- Date Issued: 2018
Achieving more cost-effective implementation of an Eastern Cape Thicket Rehabilitation project
- Authors: Gusha, Samora Mkuseli
- Date: 2012
- Subjects: Project management -- Cost effectiveness , Cost control , Activity-based costing
- Language: English
- Type: Thesis , Masters , MBA
- Identifier: http://hdl.handle.net/10948/6214 , vital:21056
- Description: The study was looking at achieving more cost-effective implementation of the Eastern Cape Thicket Rehabilitation Project. Project management has been identified as a key for a proper implementation of any kind of work. For project management to be effective, individual learning and development of project managers is of paramount importance. An improved communication process is vital, that clearly specifies objectives if any success will be achieved. A proper and structural way of addressing change is a need, so that no unnecessary delays are experienced. A need is there for processes to be streamlined to avoid duplications as they are unnecessary costs. Employees need to be given an opportunity to have their ideas looked at, a way of testing if they really have been empowered. The important thing is that their views must speak to the standards of the project. Reductions in costs are a must for more communities to benefit in the project. Continuous improvement is the way forward.
- Full Text:
- Date Issued: 2012
- Authors: Gusha, Samora Mkuseli
- Date: 2012
- Subjects: Project management -- Cost effectiveness , Cost control , Activity-based costing
- Language: English
- Type: Thesis , Masters , MBA
- Identifier: http://hdl.handle.net/10948/6214 , vital:21056
- Description: The study was looking at achieving more cost-effective implementation of the Eastern Cape Thicket Rehabilitation Project. Project management has been identified as a key for a proper implementation of any kind of work. For project management to be effective, individual learning and development of project managers is of paramount importance. An improved communication process is vital, that clearly specifies objectives if any success will be achieved. A proper and structural way of addressing change is a need, so that no unnecessary delays are experienced. A need is there for processes to be streamlined to avoid duplications as they are unnecessary costs. Employees need to be given an opportunity to have their ideas looked at, a way of testing if they really have been empowered. The important thing is that their views must speak to the standards of the project. Reductions in costs are a must for more communities to benefit in the project. Continuous improvement is the way forward.
- Full Text:
- Date Issued: 2012
Implementing an activity-based costing model
- Authors: Cohen, Howard
- Date: 2004
- Subjects: Activity-based costing , Managerial accounting
- Language: English
- Type: Thesis , Masters , MTech
- Identifier: vital:8970 , http://hdl.handle.net/10948/240 , Activity-based costing , Managerial accounting
- Description: Activity-based costing (ABC) is a forward-looking product costing method. Unlike traditional volume-based approaches, which are historically oriented, ABC concepts guide managers in seeking the best strategies to pursue in the future. This product costing method can be a valuable tool in planning and managing costs not only in the manufacturing area, but also in all aspects of business operations, from product design to distribution. Although its main advantage is its ability to provide more realistic product cost information for financial reporting purposes, use of ABC can lead to a better understanding of the strategic linkages existing between the various cost areas in the organisation. It enables managers to have a holistic view of cost management. ABC was developed to better understand, manage and control the overheads. The brief fundamental of ABC is: Products consume activities, activities consume resources, and resources consume costs. Based upon this fundamental principle, ABC can trace the cost from resources to activities that are consumed by product manufacturing processes as well as from activities to products. ABC investigates the transactions that trigger cost instead of concentrating solely on measures of physical volume or a certain amount of labour hours. Compared to the traditional costing systems, ABC can not only answer how much product cost is but also tell executives the factors triggering costs and the way to manage costs. ABC helps managers make better decisions about product design, pricing, marketing, and mix and encourages continual improvement. Unlike the traditional method, instead of using the single pre-determined overhead rate to absorb the indirect cost to products, ABC uses actual incurred cost to v determine the product cost. By tracing the absorption process of indirect cost, ABC would provide more information to management and help it find better ways to manage costs. However, the cost drivers used in ABC are constants but the cost driver rates are continually changing. ABC still uses predetermined cost drivers so it has the same fundamental problem as the traditional methods for estimating.
- Full Text:
- Date Issued: 2004
- Authors: Cohen, Howard
- Date: 2004
- Subjects: Activity-based costing , Managerial accounting
- Language: English
- Type: Thesis , Masters , MTech
- Identifier: vital:8970 , http://hdl.handle.net/10948/240 , Activity-based costing , Managerial accounting
- Description: Activity-based costing (ABC) is a forward-looking product costing method. Unlike traditional volume-based approaches, which are historically oriented, ABC concepts guide managers in seeking the best strategies to pursue in the future. This product costing method can be a valuable tool in planning and managing costs not only in the manufacturing area, but also in all aspects of business operations, from product design to distribution. Although its main advantage is its ability to provide more realistic product cost information for financial reporting purposes, use of ABC can lead to a better understanding of the strategic linkages existing between the various cost areas in the organisation. It enables managers to have a holistic view of cost management. ABC was developed to better understand, manage and control the overheads. The brief fundamental of ABC is: Products consume activities, activities consume resources, and resources consume costs. Based upon this fundamental principle, ABC can trace the cost from resources to activities that are consumed by product manufacturing processes as well as from activities to products. ABC investigates the transactions that trigger cost instead of concentrating solely on measures of physical volume or a certain amount of labour hours. Compared to the traditional costing systems, ABC can not only answer how much product cost is but also tell executives the factors triggering costs and the way to manage costs. ABC helps managers make better decisions about product design, pricing, marketing, and mix and encourages continual improvement. Unlike the traditional method, instead of using the single pre-determined overhead rate to absorb the indirect cost to products, ABC uses actual incurred cost to v determine the product cost. By tracing the absorption process of indirect cost, ABC would provide more information to management and help it find better ways to manage costs. However, the cost drivers used in ABC are constants but the cost driver rates are continually changing. ABC still uses predetermined cost drivers so it has the same fundamental problem as the traditional methods for estimating.
- Full Text:
- Date Issued: 2004
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