Cost Accounting Practices and Profitability of Listed Manufacturing Firms in Port Harcourt, Rivers State

This study investigated the relationship between cost accounting practices and the profitability of listed manufacturing firms in Port Harcourt, Rivers State for the period of 5 years (2019-2023). The research used job-order costing, standard costing as proxies of cost accounting practices and net profit margin, return on assets as proxies of profitability. 21 listed manufacturing firms in Port Harcourt, Rivers State formed the population of the study out of which 10 companies were selected using random sampling method of sampling. Primary data was used for the research which was obtained from the issue of questionnaire to various
respondents. Univariate and bivariate model with the use of SPSS version 25 software were used to analyze the data collected. The findings of the study showed that there is a significant relationship between Job-order Costing and Return on Assets of Manufacturing firms in Rivers State. There is a significant relationship between Job-order costing and Net Profit Marin of Manufacturing firms in Rivers State. There is a significant relationship between Standard Costing and Return on Asset of Manufacturing firms in Rivers State. There is a significant relationship between Standard Costing and Net Profit Margin of Manufacturing firms in Rivers State. The research therefore concluded from the findings that relationship existing between Cost Accounting and profitability of manufacturing firms and this relationship is a positive and significant one. As a result, it was recommended amongst others that Manufacturing firms in Port Harcourt, Rivers State should adopt consistent and adequate Job-order costing and standard costing practice to increase return on asset and net profit margin as a means of strengthening profitability.