Question

Government of Ghana's flagship programme of one district one factory is aimed at consolidating the nation's efforts towards industrialisation with a major goal of creating employment for the teaming youth and for Ghanaians to patronize made in Ghana goods. previous government efforts targeted National Board of small Scale industries to serve as a spring board in achieving these goals. the challenge is that our small and medium Enterprise have not lived up to expectations due their inability to provide adequate and relevant data to prompt management decisions making. Ghanaians SME are donated by one man self style business without the needed skilled human resources and are not interested in joint ventures or partnerships to take advantage of any synergy, making Ghana to lack in the global industrial ranking. Chinese industries have grown and exported everything under the sun including COVID 19 as a result of good cost and management accounting practice. we need to grow our SME,s the question is how do we do it?
(a) As a level 300 student select any Ghanaians business set up and design a cost and management accounting systems bearing in mind costing methods and techniques in cost entertainment. which will ultimately help the business entity in costing and pricing of its products and services for the Ghanaians economy.
(b) what were the relevant data obtained from your write up to assist management in its decision making role?

Answer 1

a)The focus should be on making sub assemblies for established OEM's. The sub assembies need to be labour intense like that of headlight manufacturing. Alternatively, construction allied industry can be thought of as a major business. Agricultural machinery manufacturing is another area that can be focussed on. Kindly note that the SME businesses thought of need to be labour intense with minimal automation.

The costing should mainly seek to reduce labour costs as the Ghanian economy shoyuld have abundant labour thereby reducing variable costs. The fixed assets used for the production need to be highle efficient and should seek to be cost friendly. Efficiency concepts like JIT, Lean mfg need to be explored subsequently when volumes pick up.

As the industries are more focussed on ow skilled workers, supervisory staff need to be well trained and need to bring in cost efficacy.

b) The relevant data that may be used is Cost/Employee, Cost to Profit, Cost to Gross Sales. Average Rate of Return on Business, Procurement costs, Cost of Fixed assets, Useful Life of Assets, Maintenance and Consummable cost, Cost of Packaging and Logistics