| dc.description.abstract | The present study was motivated by, and is based on,
a rather evident belief that overhead cost control and
cost control in general, were generally poor in most
Ugandan firms, irrespective of type/group of industry.
A possibility of lack of adequate qualified staff did
not seem to adequately explain the cause of this situation.
Viewed in the context of formal organizational
control, cost control is a requisite to the success of
an organization. Overheads usually constitute a
significant proportion of total cost.
The study seeks to confirm the said belief about
overhead cost control in Uganda and to assess the
seriousness of the situation. It also attempts to
determine the problems that have led to the situation.
Based on the nature of the problems, it is hoped that
some solutions .might be suggested to improve the
situation.
In the study, a sample of large Ugandan manufacturing
firms was used. The sample in fact comprised the
'population' of 'large' firms in Uganda. The study of
such a population was used to provide a basis for
suggesting that cost control would be worse for the
smaller firms in Uganda. Maintenance costs are studied.
Based on a logical understanding of the maintenance
costs the results are used to· draw generalized
conclusions about overhead cost.
Two hypotheses are tested to confirm that:
(a) The said problems existed irrespective of type/
group of industry and that, these factors would
not be the cause for the said situation.
(b) A possible lack of adequate knowledge about
overhead control techniques would not
have significantly influenced the situation.
To do this a quantitative analysis is carried out.
The results of these tests should highlight or otherwise
provoke questions that are answered by the analysis of
the facts and opinions given by key staff in the firms
and other relevant sources in the country.
The results confirm the original hypothesis that
overhead cost control in Ugandan firms was generally
poor and that no significant type of firm and/or
industrial related problems existed thus indic ting
that the said problems were well distributed in the
country. The results further show that:
knowledge about the control techniques
the state of affairs. But this was not signtficantly
true for all the overhead control technique at her
reasons to account for the situation included the
unfavourable economic and political environment
Based on the results, suggestions for improvement
are made. In all, it is ascertained that without a
solution to the mentioned environmental problems} no ,
significant improvement could be achieved. Yet the
environmental problems were beyond the means of
, the Ugandan accountant and the accounting profession
as a whole. Considering this, the poor overhead control
In Uganda would not only remain, but, might even
increase unless the environment was improved;
Some limitations in the study are noted. The
sample size used is considered rather small for
conclusive statistical analysis. The inclusion of
individual opinions is also considered a weakness in
the results. Conclusions about overhead cost are drawn
from a study of maintenance costs. Although a case
is made for this, a potential weakness is possible.
The three choices were, however, considered
essential in order to achieve an in-depth enquiry
into the state of overhead cost control in Ugandan
firms. | en |
