Effects of Inventory Cost Management on Entity Performance: Proof from Quoted Breweries in Nigeria

Abstract

The research examined the effects of inventory cost management on entity performance: Proof from quoted Breweries in Nigeria.The general objective of this study is to appraise inventory cost management on entity performance of quoted breweries in Nigeria. The area of the study is breweries precisely Nigeria Breweries Plc and International Breweries Plc. The instruments used were main sources from both Primary data and Secondary data. A simple percentage approach was employed to analyze the questionnaire while the hypotheses were tested using Regression Analysis at 5% level of significance. The analyses were performed using the Statistical Package for Social Sciences (SPSS) Version 20. The study found that the various techniques and systems of inventory cost management adopted in breweries are effective since the significance value (p-value) of 0.046 < 0.05. it further found that inventory control has contributed significantly to the net income of listed breweries(Nigeria Breweries Plc) with (p-value) of 0.005 is less than 0.05 while revise is the case of International BreweriesPlc. It therefore recommended that listed breweries should expand their inventory system to suit specific needs of production and at the same time ensure that maximum attention is paid to inventory cost management so as to avoid or reduce the amount of loss that would be gotten from damaged goods in inventory..