COST BEHAVIOR ANALYSIS AND FINANCIAL PERFORMANCE OF MANUFACTURING INDUSTRIES IN RWANDA
Creators: name: MUKABATSINDA M. CLAIRE
name: Prof. Dr. MBONIGABA Celestin
Publisher: name: Zenodo
Year: 2021

description: The study was about cost behavior analysis and financial performance of manufacturing industries in Rwanda: case study of Bralirwa Plc in the period of 2017-2020. The issue is that Rwanda industries are not achieving properly their objectives and goals, where many reasons are considered to threatening industries’ objectives: some of them are winding up due to ignoring cost behavior analysis practices in financial performance process, lack of better knowledge about management accounting and many industries are in trouble. The specific objectives of this study were examining the effect of material cost analysis on the financial performance of manufacturing industries in Rwanda; to analyze the effect of labor cost analysis on the financial performance of manufacturing industries in Rwanda; evaluating the effect of overheads cost analysis on the financial performance of manufacturing industries in Rwanda; and identifying the relationship between cost behavior analysis and financial performance of manufacturing industries in Rwanda. This study applied the cross-sectional survey design of quantitative approach. Target population is 201 employees in management team in charge of cost behavior analysis and financial performance of Bralirwa Plc, Kigali Rwanda. The stratified and simple random sampling techniques were used to select 67 respondents from Bralirwa Plc. Primary data were collected using questionnaires while secondary data was conducted by accessing the published documents including  financial reports of Bralirwa Plc. Descriptive statistics and inferential statistical were used in this study. Key findings displayed that there is a positive and very strong correlation between material cost analysis in cost behavior analysis and financial performance of manufacturing industries as a Pearson correlation is .895** with the p-value of 0.000, which is less than standard significance level of 0.01. There is positive and very strong correlation between labor cost analysis and the financial performance of Bralirwa Plc as Pearson correlation is .885** with p-value of 0.000, which is less than standard significance level of 0.01. The results revealed that there is positive and strong correlation between overheads cost analysis and financial performance of Bralirwa Plc, Rwanda as Pearson correlation is .556** with p-value is 0.000, which is less than standard significance level of 0.01. Based to the findings, the problem of this study was solved, the research objectives were achieved, and research hypotheses were verified where all null hypotheses were rejected, while alternative hypothesis were retained by saying that there is significance and very high relationship between cost behavior analysis represented by Material Cost analysis, Labor Cost analysis, Overheads Cost analysis; and financial performance of manufacturing industries (Bralirwa Plc) in Rwanda. Bralirwa Plc should use comparative analysis using comparison with other companies in the industry. Bralirwa Plc has to improve the skills of the employees working in the cost analysis.