Standard costing and cost driver management in quoted consumers manufacturing firms in Nigeria
DOI:
https://doi.org/10.33003/fujafr-2026.v4i3.417.375-388Keywords:
Cost driver management, labour costing, manufacturing firms, material costing, overhead costingAbstract
Purpose: This study examined the effect of standard costing on cost driver management in quoted consumer manufacturing firms in Nigeria to address persistent production cost increases and inefficiencies inherent in traditional cost control systems. Specifically, it assessed the individual impacts of standard material, labour, and overhead costing on cost driver management.
Methodology: A descriptive survey research design was adopted. Structured questionnaires were administered to 300 purposively selected accounting and finance personnel across the target firms. Collected data were analyzed using descriptive statistics and multiple regression analysis.
Results and Conclusion: The empirical findings revealed that standard material, labour, and overhead costing collectively explain 55.1% of the variation in cost driver management (R2 = 0.551, F = 85.73, p < 0.05). Individually, standard material costing (β = 0.361, p = 0.000), standard labour costing (β = 0.284, p = 0.001), and standard overhead costing (β = 0.197, p = 0.012) each exerted positive and statistically significant effects, with material costing having the strongest impact. The study concluded that effective standard costing implementation significantly enhances cost driver management by strengthening cost control and highlighting operational inefficiencies.
Implication of findings: Management should strengthen material and labour variance tracking frameworks while integrating modern techniques like activity-based costing for overhead allocation to maximize cost control effectiveness and overall operational performance in Nigerian manufacturing firms.
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