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Abstract
Cost accounting techniques directly impact financial performance by giving managers the detailed data needed to control expenses, set profitable prices, and eliminate waste. The study intended to examine the effect of cost accounting techniques and financial performance in agricultural companies in Rivers State. The specific objective of the study was among others; to examine the relationship between marginal costing and net profit margin in agricultural companies in Rivers State. Also, to examine the relationship between standard costing and net profit margin in agricultural companies in Rivers State. The study anchored on theory of constraints and theory of resource based view. The study adopted correlational survey research design. The population of the study consisted eleven (11) agricultural companies in Rivers State. The sample size of this study is fifty-four (54). This number is derived by the application or use of Taro Yamane formula for sample size determination. The instrument for this study was primary data. The formulated research questions were analyzed with descriptive statistics. The unit of respondents for the study consist of top accountant / management staff and junior accountant / management staff that are knowledgeable and competent in eleven (11) agricultural companies in Rivers State. The findings of the study among others was that; marginal costing has a significant relationship with net profit margin in agricultural companies in Rivers State. The study concludes among others that, standard costing has no significant relationship with net profit margin in agricultural companies in Rivers State. However, the study recommends that activity-based costing has a significant relationship with net profit margin in agricultural companies in Rivers State, through replacing broad, inaccurate overhead distribution. Therefore, activity-based costing should be carried out more in agricultural companies in Rivers State.
Keywords: Cost accounting techniques, Financial performance, Marginal costing, Standard costing, Net profit margin.
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