Cost accounting is an important tool in the management of any business firm or organization, which includes those in the small scaled industry. In the cause of our research instrument indicated the maintenance of improper and inadequate records coupled with the fact that cost methods used, through sometimes effective, were unconventional. For a small scale business to approach profit maximization level, it must be effective in cost control procedures and appropriate books of accounts must be set in place. Since many small scale businesses may not be able to afford the employment of qualified and skilled accountants, they can subscribe to the services of such professional through consultancy or part-time arrangement.
The growing concern of every business depends on how efficient and effective cost accounting is practiced. The principle of cost accounting is the provision of detailed information for planning, control and decision-making. In Nigeria the practice of cost accounting in small scale business is most time pick apart. The current state of cost accounting practice in the informal business in Nigeria appears inappropriate and therefore ineffectual. Costing system and the activities
or operations of the entities are in no way related. However, the guide provided by the costing system seems to be tentative and inaccurate for the aiming purpose. Preparation of exception reports and position statements are not considered necessary. Even when they are prepared, they are not produced at appropriate intervals and early enough to be valid Africa administrative studies,
No 56, p. …to … cost accounting practice in the small scale industry of Nigeria regrettably enough, it is envisaged that this enigmatic and ugly situation is not going to be short-lived in spite of its attendant consequences.
To shape a new directional focus that will ensure an efficient and effective cost accounting practice in