Cost Control and Profitability Analysis in Manufacturing Company

This study examined the relationship between cost control and profitability in Fan Milk Plc, Ibadan. The study was motivated by increasing cost pressures confronting Nigerian manufacturing firms and limited organisation-level evidence integrating cost-control practices with management practices, employee involvement, and technological integration. Specifically, the study examined the effect of cost control on profitability and investigated how management practices, employee involvement, and technological integration enhance its effectiveness. A descriptive and explanatory case-study design with a mixed-method orientation was adopted. The population comprised 50 relevant employees and management personnel, and a census approach was used. Of the 50 questionnaires distributed, 47 were returned, representing a 94.0% response rate. Data were analysed using descriptive statistics, Pearson correlation, and multiple regression analysis, supported by documentary and qualitative evidence. The findings revealed that structured cost-control policies, budgetary control, variance monitoring, lean practices, and strategic alignment were strongly embedded within the organisation. Cost control had a strong positive and significant relationship with profitability (r = 0.751, p < 0.01), while management practices and operational support significantly enhanced financial performance, explaining 67.8% of its variation (R² = 0.678, F = 29.84, p < 0.01). Technological integration improved cost monitoring and decision-making, although employee participation and external cost pressures remained areas requiring improvement. The study concludes that effective cost control, supported by proactive management, employee involvement, and technological integration, is critical to sustainable profitability.