The Impact of Cost Control Strategies on Companies Performance and Growth: Evidence from Some Selected Companies in Zimbabwe
Author(s)
Wayne Chipwere , Joseph Adu-Gyamfi , Kong Yusheng ,
Download Full PDF Pages: 28-33 | Views: 839 | Downloads: 236 | DOI: 10.5281/zenodo.3702061
Abstract
The study investigated the effect of cost management on the financial performance of manufacturing firms in Zimbabwe. The specific objectives include examining the cost of inventories, the cost of labour, and the cost of sales on performance. The study will be relevant for investors, management board and regulatory bodies. The study employed a descriptive research design. The study employed panel data covering four (4) years 2014-2018 which was gathered from the financial statement of a selected manufacturing firm. The study employed the pooled regression analysis for its data analysis. The study revealed that cost of inventories has insignificant positive effect on return on equity, which depicts that cost on inventories have a positive influence of the going concern of the organization in terms of profit, but it should not be given the utmost importance has the only cost relevant components in the organization that can enhance performance. The cost of labour will increase performance but could be detrimental if the money spent on labour is taking a larger percentage of the overall profit component of the organization
Keywords
Cost control: Cost management, Financial performance, Zimbabwe
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