Costing and Financial Performance of Private Security Service Industry in Kenya: a Case Study of Kksecurity Group

COSTING AND FINANCIAL PERFORMANCE OF PRIVATE SECURITY
SERVICE INDUSTRY IN KENYA:
A CASE STUDY OF KKSECURITY GROUP

A Thesis Submitted In Partial Fulfillment Of The Requirements For Personal satisfaction.

By Mr. Nixon Okari

for sally

14th Aug 2011

CHAPTER ONE
INTRODUCTION
Background to the Study  
Given the complex nature and competitive environment under which modern organizations operate, the way forward for organization is to adopt strategies, methods, and practices which enable them to outcompete competitors. Recent global, political and economic events such as liberalization of economies, rising cost of production, global economic down turn, many competing and substitute products in the market and spiral over effects of terrorist attack in America have led many to retrench and adopt stretching cost cutting measures (Hansen, 2006).
The creation, operation, alteration, and cessation of an organization, whether within the private, public, or voluntary sector- all incur costs. Costs are resources/procedures that are sacrificed to achieve an objective. Expenses are the costs charged against revenue in a particular accounting period. “Costing is a technique and process of ascertaining costs” (ICMA, London). It expresses faithfully the actual costs of any particular unit of production and also discloses how such total cost is constituted. According to Wheldon, it is ‘the classifying, recording and appropriate allocation of expenditure for the determination of the costs of products or services; the relation of theses costs to sales volumes and the ascertainment of profitability’.
The basic principles of ascertaining costs are the same in every system of cost accounting. However, the methods of analyzing and presenting the cost may vary from industry to industry. The method to be used in collecting and presenting cost data will depend upon the nature of production. Job order costing is used where production is not repetitive and is done against... [continues]

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