Abstract:
The aim of this study is to analyze the effect of Cost Management on profitability of Manufacturing company in Rwanda Case Study of Bralirwa PLC Period2019-2022, of objective of the study too assess the effectiveness of cost accounting system applied by BRALIRWA PLC, to evaluate the contribution cost accounting systemto the profitability of BRALIRWA PLC, This study is organized into four chapters, for this case, the first chapter covers the introductory part of the study.The second chapter give the overview of the literature review and definitions of key concepts as well as an understanding of some key concepts and other theories related to the topic. The third chapter is present research methodology.The fourth chapter is concentrates on analysis, interpretation and presentation of findings.Finally, this study is ended with the general conclusion and suggestions. With the data collected from the fieldtable 4.9 shows that almost all respondents representing 90.1% strongly agreed that cost accounting provide update to management on the change in cost of raw material so that the company can update the selling prices and 9.9% agreed with this. Normally, cost of raw materials would change due to various reasons and it change automatically affect the profitability of the company if is not controlled well. On the other side if information from cost accounting mentioned that the cost of raw materials are reduced Bralirwa PLC also respond to the case by reducing the price to ensure that it win in pricing competition. Table 4.12 presented BRALIRWA’s turnover, this could help the researchers to draw conclusion and give recommendations on performance improvement in this company as a result of effective pricing strategies. And it is clear that BRALIRWA PLC’s turnover increased by 6.38% in 2020; by 15.39% in 2021 and by 27.56% in 2022. mainly in financial report show that the turnover increased each year. Therefore, the evolutions of turnover reflect to the many factors such as good cost management in general, motivated human resource and the quality of services offers to the customers. Therefore this allow researchers to confirm that cost accounting contribute to the profitability of the company under study. recommendation Big scale business operator units should ensure that complete and accurate business records are kept because they are essential for decision making. This can be ensured by undertaking course training about records keeping, and hiring knowledgeable and skilled workers.
