The relevance of a good accounting system in the performance of a manufacturing company (a study of Unilever plc aba) Nigeria


       This research focuses on the relevance of a good accounting system in the performance of a manufacturing company (a study of Unilever plc aba). For a company to ensure and establish its existence as a going concern, it must aim at a good profitability scheme, in order words called profit optimization, this can only by achieved through efficient use of a good account system. As such, this research study comprises how effective and efficient they have efficiently applied in manufacturing firms or companies using Unilever Nig Plc as a typical example and the impact of this good accounting system, electing their various effects and valuation of their performance. The study bears the following problem which expected to be analyzed and suggested solution will be offered, such problem include, if the good account system helps in achieving organizational goals. In order to achieve success in carrying out the study, various types of data collection methods were used, which form the primary data, also observation were made to equip the primary data collection. The secondary data collection includes, document, chi-square, materials both published and publishers books. Analysis of data were made with the aid of twenty (20) questionnaires administrated to the respondents, responses were analyzed and decisions taken. The major finding includes that good accounting system influences decision making of any manufacturing company, recommendation were made based on the findings.






This research is on the relevance of a good accounting system in the performance of a manufacturing company (a study of Unilever plc aba). Accounting system has been identified as a major factor to which good performance of a manufacturing company can be attributed. One may ask what is “accounting” according to America Institute of Certified Public, Accountants (AICPA; 1994). An art of recordings, classifying and summarizing in a significant manner and in terms of money, transactions and event which are in part at least of a financial character and interpreting the results thereof.

Accounting is the computer of financial information for the use of making economic decision. From the above definition, it is evident that accounting involves data recording, data evaluation which includes budgeting control, performance analysis, decision analysis and data reporting.

The research will also enumerate how the use of budget which is a financial stamen that shows expected income and expenditure of a firm and their sources help in the proper performance of a firm.

Cost accounting as a major aspect of a good accounting system will also be discussed. The use of internal control measure and its effects on a manufacturing company, hence the establishment of an auditing department, will also be showed. The effect of all these aspect of accounting and their relevance on the performance of a manufacturing company is the objective of this research work hence the research topic.



The name Unilever Nigeria Plc is a household name in the manufacturing sector. The company is involved in the manufacturing and marketing of detergents, soaps, skin cream, tooth paste, squash drink, edible fats and oil, tea and coffee as well as a range of petroleum jellies etc.

The company first came to existence in Nigeria in 1923 when it was incorporated as a private company under the name Lever brothers West Africa Limited in 1924 the name was changed to West African Soap Industry Limited and later Unilever Brothers Nigeria Limited in 1973, the company went public in 1973, it subsequently changed its name to Unilever Brother Limited and in compliance with the company and Allied Matters Decree (AMD1990). The company substituted the word Ltd in its name with Plc to become Unilever Nigeria Plc.

Currently Unilever Brother Nigeria Plc operates four (4) factories, which are located in Apapa, Aba, Agbara and Isolo. “Unilever Brothers Nigeria Limited factory in Aba, Abia state which was commissioned in 1958 was producing sunlight and key laundry soap initially but in 1980 an additional plan was installed for the production of Omo and Surf detergents while in 1988 another plant for production of Rim detergents was also installed.

Unilever Brothers Nigeria Plc range of quality products is distributed and sold at a uniform price over the country and beyond the shores of the country through established and tested distribution network using appointed distributions, supervised by their trained sales force.

Unilever Brothers Nigeria has been dedicated to the production of top quality products for grand products remains “A MUST IN EVERY HOME”

Specifically, Unilever Brothers Nigeria Plc Aba branch has staff strength of three hundred and fifity (350) including managers.

The Aba Branch produces some products like Omo, Rim tablets, Rim powder, sulpheric acid, vim, vim plus, sunlight, palm oil, palm cake, which are exported to Germany for foreign exchange etc.


A manufacturing company faces a lot of problems which adversely affects the profitability, productivity and the overall performance of the organization. These problems are;

  1. The accounting system of most manufacturing company is very poor
  2. Some manufacturing companies prefer cheap labor thereby employed untrained staffs
  3. Some manufacturing companies face the problem of inadequate record keeping
  4. Some manage is unable to interpret accounting information


The research tends to achieve the following objects

  1. To ascertain, assess and evaluate how relevant accounting system is on the performance of manufacturing firms
  2. To examine the extent to which accounting system can supply management with needed information for decision making.
  3. To bring to line light the role of interview controls in making the company’s accounting system effective.
  4. To suggest way of improving on the lapses in the design of modern accounting system.
  5. To enable manufacturing companies identify areas where accounting system is inadequate.
  6. To highlight on the importance of a good accounting system.


       From the foregoing statement of problem, the following research questions were asked

  1. In what measure has good accounting system helped the organization to achieve its arms or objectives?
  2. What useful role shave efficient accounting information system played in the employment of workers?
  3. How effective is management decisions based on a good accounting system in the company?
  4. To what extent has the various control methods used, helped to improve the company’s performance?


The following hypothesis is proposed for the study

Ho:  Accounting system has no significant impact on the performance of a manufacturing company

H1:  Accounting system has significant impact on the performance of a manufacturing company

Ho:  Good accounting system does not increase profitability of manufacturing company

H1:  Good accounting system increase profitability of manufacturing company

Ho:  Poor accounting system does not constitute hindrance and the profitability of a manufacturing company race to the estimate of a manufacturing company

H1:  Poor accounting system constitute hindrance and the profitability of a manufacturing company race to the estimate of a manufacturing company


The purpose of this study is to reveal that good accounting system is needed by bother individuals and parastatals in carrying out their day-to-day activities. The information gathered from this study will be of immense value to the management of corporate and private organizations since they need to continuously improve on their performance. It will also be of authorities, investors and government since the profits or loss of the firm is made known in the financial statement.

This study will make available good information system to decision makers for reference purposes. This study will also provide information on managerial approaches and techniques, which will help the management to accomplish its objectives.


This topic is a wide one, as a good accounting system concerns all companies, but the research will cover system methods and techniques used in accounting system. Using the available information to explain fully the analysis.


During the course of the study, the researcher encountered some problems which limited the scope of the study.

These includes:

Problems of finance and non-chalet attitude of some respondents towards completing the questionnaire. This emanated primarily from inadequate attention given to the researcher by the company staffs due to the tight schedule and money factor, it also includes lack of research facilities and dealt of statistical information.



  1. Manufacturing: The making of good or wares by from raw labour or by machinery on large scale machinery on large scale machinery from raw material into form to use.
  2. RE-ORDER LEVEL: According to W.M. Harped” this is the point at which it is necessary to initiate purchase requisitions for needed supplies of the material.
  3. ECONOMIC ORDERING: This is pre-calculated re-ordering quantity.
  4. DATA: This refers to raw facts that have not been processed.
  5. COST UNIT: According to W.M. Harped “It is a quantitative unit of product or service in relation to which costs are ascertained.
  6. INFORMATION: This refers to data that have been processed and turned into useful meaning.
  7. STOCK: This word within the context of the project denotes:
  8. Raw materials
  9. Finished goods that have not been sold.
  10. RETRIEVING: This involves searching and obtaining data from where it is stored when the need arises.

Custom tab


There are no reviews yet.

Be the first to review “The relevance of a good accounting system in the performance of a manufacturing company (a study of Unilever plc aba) Nigeria”

Your email address will not be published. Required fields are marked *

Back to Top
Product has been added to your cart