ASSESSMENT OF COST CONTROL SYSTEM (THE CASE STUDY OF SEMIRA FLOUR FACTORY IN WOLKITE TOWN

Abstract

The purpose of this thesis is to assess the cost control system in manufacturing costs at Semira flour factory P.L.F in Wolkite town. It looks through the company’s management support, employees’ involvement, arrangement of cost and responsibility centers, tools and techniques of cost control, cost classification, and allocation, methods of costing and its implementation, purchasing procedures, and finally the use of cost information of thecompany’s data were collected through interview. The data were gathered through an interview addressed to the employees of the organization. The main aim of this study is to analyze the cost control system of the Semira flour factory in Wolkite townBased on the analysis of the following points are recommended for Semira flour factory to improve its costing system and alleviate problems of making appropriate visions and effectively the overall activities. The factory should revise of is standard cost. This is because to reflect changes caused by environment, price, and competitor reactions controlling and decisions made by management become effective. To alleviate the labor efficiency variance, the factory should have better-implemented training and development of skills and abilities for employees. This means labor efficiency variance is best solved by developing job training that is attained workplace by skilled supervisors and off-job training that means training outside the workplace like education, workshops, and similar