Abstract:
In the pursuit of organizational objectives both financial and non-financial objectives, the goal of profit maximization and cost minimization cannot be overemphasized in the center of organizational operation. In view of this, this study examines the effect of cost management mechanism on financial performance of listed consumer goods companies in Nigeria. To achieve these objectives, an ex-post facto research design was employed with a population of 22 listed consumer goods companies out of which 15 companies were sampled using a purposeful sampling technique from 2013 to 2022, and the data was analyzed using panel multiple regression technique with the help of E-view 10 statistical tools. The result of the study revealed that Prime cost has Positive but insignificant effect on financial performance of listed consumer goods companies in Nigeria, while fixed overhead has a negative but significant effect on financial performance of listed consumer goods companies in Nigeria. The study therefore, conclude that when taking collectively return on capital employed against the regressor, cost management mechanisms have a positive and significant effect on return on capital employed of listed consumer goods companies in Nigeria. Based on this finding, it is recommended that the management of consumer goods companies in Nigeria should manage their cost system effectively since it has a positive effect on financial performance.
