ABSTRACT
This research was on to obtain the major purpose of instituting cost accounting system that will guide management of the transport department in an organization. It was conducted in Uganda Railway Corporation. The researcher was interested in this topic because usually managers are handicapped in making prompt decision s for transport department clue to lack of accurate analysis of behaviours of the costs relating to the operation of the transport service. During the process of conducting this research, it was realized that there is an urgent need to integrate a clearly defined costing system into the existing financial accounting system Some of the recommendations made by the researcher in this report included the need to strengthen the cost accounting system as an integral part of the existing financial accounting system, for the purpose of cost control, integrate the departmental transactions. into a line of authorization and management being committed to discipline of cost control, there should be company y wide cost-profit awareness. The study was carried· out as a result of the fact that the researcher expected the role of cost accounting to improve on the management to confine the known cost-profit facts to a select few who need to know than fewer people will be committed to cost management.
TABLE OF CONTENTS
DECLARATION ................................................................................................................. i
APPROVAL ....................................................................................................................... ii
DEDICATION·································································•··········•···•··························· .... Ill
ACKNOWLEDGEMENT ........................................................................................ Iv
LIST OF TABLES AND ILLUSTRATIONS .............................................................. v
TABLE OF CONTENTS ................................................................................................ VI
ABSTRACT ........................ : ........................................................................................... Vlll
CHAPTER ONE ................................................................................................................. 1
l .O. Introduction ......................................................................................................... 1
1 . l . Background.......................................................................................... . ......... I
1.2. Staten1ent of the proble111 .... ..... ........................... ....... .... ........... .. ... .. ... '
1.2.4. Significance and purpose of the study........................................ 7
1.2.2. I-Iypotl1esis.................................................................................... . 3
1.2.3. Objectiws of the study ............................................................................... 4
CHAPTER TWO (II).. ...................... .. . . ... .... .. ..... .. .. ... . ...................................... 5
LITERATURE REVrEW· .............................................................................. •·············· 8
3.0. Introduction ........................................................................................................ 8
3.1. A theoretical frame work ................................................................................ 8
3.2. Costing in transport management ................................................................ l O
3.3. lnstalling a cost accounting system ......................................................... I 0
CHAPTER THREE (III) ................................................................................... 8
METHODOLOGY ............................................................................................................. 5
2.0. Introduction ......................................................................................................... 5
2. l. Research Design ........................................................................................ , ....... 5
2.2. Methods of data collection .................................................................................. 5
2.3. Types of data collected ....................................................................................... 5
2.4. Sources of data .................................................................................................... 5
2.5. Data processing ................................................................................................... 6
2.6. Data processing and analysis .............................................................................. 6
2.7. Data analysis and presentation ............................................................................ 6
2.8 Limitations anticipated and problem ···6
CHAPTER FOUR .......................................................................................................... 12
PRESENTATION OF FINDINGS ............................................................................... 12
4.0. Introduction ...................................................................................................... 12
4. l. Company-Uganda railway corporation ............................................................. 12
4.1.1. What is Uganda Railway Corporation? .................................................... 12
4.1.2. Objectives of the study .............................................................................. 12
4.1.3. Authority of Uganda Railway Corporation ............................................... 13
4.1.4. Location of Uganda Railway Corporation ................................................ 14
4.1.5. Historical background of Uganda Railway Corporation ...................... I 5
4.1.6. Changes ..................................................................................................... 16
4.1.7. Membership and international links .......................................................... 16
4.1.8. Block trains bulk haulage ........................................................................ 17
4.1.9. Shipping ................................................................................................... 18
4.1.10. Warehousing facilities ........................................................................... 18
4.1.11. The future of Uganda Railway Corporation .......................................... 19
4.2. The department organization .......................................................................... l 9
4.3. The transport service transaction ...................................................................... 21
4.4. The problem of incomplete recording ........................................................... 22
4.5. The purchasing procedure ................................................................................. 23
4.6. The problem area in the purchasing routine ................................................. 24
4.7. Receipt of good at stores ................................................................................... 25
4. 7 .1. Stores upkeep ............................................................................................ 25
4.7.2. Movement of supplies out of stores .......................................................... 25
4.7.3. Problems faced in storekeeping .......................................................... , ... 26
4.8. Wage routine .................................................................................................. 26
4.9. Time recording .................................................................................................. 26
4.9.1. Time basis of remuneration ..................................................................... 27
4.9.2. Idle time .................................................................................................... 27
4.10. The piece work system ..................................................................................... 27
4.10.1. Direct expenses ......................................................................................... 28
4.11 Costing the transport service ............................................................................. 28
4.11. 1. Introduction ................................................................................................... 28
4.11.2. Fuel costs .................................................................................................. 29
Staff costs ........................................................................................................................... 29 0
4.11.3 Among lixed costs, are the following costs ....................................... 30
4.12. Fixing the tariff ( rail transport) ..................................................................... 3 0
4.13. Other factors considered in rate fixing ......................................................... 33
4.14. Estimating for the entire department using the higl1 low cost method ......... 34
4.15. Using cost data for planning profit levels cost volume profit analysis ......... 35
-L 16. The contribution margin at transport department ..................................... 3 5
4.17. The break even analysis ........................................................................... 38
4.18. Profit planning for the department.. .......................................................... 40
4.19. Using cos.t data for performance evaluation ............................................. 41
4.19 .1. The cost centre system as a management ........................................... : ..... 41
4.19.2. Cost centre system and budgets ................................................................ 41
4.19.3. Budgeting at transport department.. ........................................................ 41
4.19.4. Summary ...................................................................................................... 43
CHAPTER FIVE .............................................................................................................. 45
5.1. Strength sited in the routine .............................................................................. 45
5.2. Problems actual and potential in routine ........................................................... 46
5.3. Recommendations ............................................................................................. 47
BIBLIOGRAPHY ............................................................................................................. 49
APPENDIX ......................... : ............................................................................................. 52
