DATA PRESENTATION, ANALYSIS AND DISCUSSION FINDINGS
introduction
This study investigated “The effect of cost management practices on financial performance”. The data has been analyzed by using statistical package for social science SPSS version 29.0.2.0 as data analyzing tool. This chapter presents the results of the analysis in tables that containing the type of responses. Its frequencies. Percentages and demonstrated reactions of respondents in the study to the statements given in the questionnaire. This chapter highlights on data analysis, presentation and interpretation. The data analysis and interpretation based on research questions as well as research objective. Then data representation and analysis under this heading was presented using the complete research data found from the target population
Demographic Characteristics of the respondents
This part presents the background information of the respondents who participated in this study: the purpose of this background information is to find out the characteristics of the respondents. Furthermore, the respondents have also given the promise that all the data they provided is used only for academic purpose research and the identities of the respondents was confidential. In total 25 respondents filled in the questionnaire selected from towfiiq general trading company in garowe Somalia the shape of the questionnaire in the demographic section is looked upon in terms of Sex, Age, Personal qualification, Experience, and job title
Table 3 : Response Rate
Targeted Number of employees Responded employees Response Rate
27 25 92.59%
Source: Primary Data
Sample size of study was of 27, those who were responded the questionnaire was 25, so that researcher was analysis only 25 respondents.
Background information
This was contains presentation and interpretation of the background information in the terms of sex age qualification experience and job title
Table 4 : Demographic characteristic of respondents
Items Description Frequency Percentage
Sex male 25 100.0
Age 20-29yr 7 28.0
30-39yr 11 44.0
40-49yr 7 28.0
Qualification certificate &diploma 3 12.0
Degree 8 32.0
Masters 5 20.0
Others 9 36.0
Experience less than 1yr 4 16.0
Below 1-3yr 11 44.0
Between 3-5yr 7 28.0
6yr and above 3 12.0
Job title top management 5 20.0
Senior management 8 32.0
Junior management 12 48.0
Primary data(2024)
sex
Table summarizes that the all the respondents 25 (100%) were male. How ever this table shows that the all the respondents were male.
Age
The table shows the age distribution of employees in Towfiiq Company. Out of 25 respondents, 28% are between 20-29 years old, 44% are between 30-39 years old, and 28% are between 40-49 years old. The total percentage of respondents is 100%.
Qualification
The table shows the qualifications of employees in Towfiiq Company. Out of 25 respondents, 12% have a certificate or diploma, 32% have a degree, 20% have a master’s degree, and 36% have other qualifications. The total percentage of respondents is 100%.
Experience
The table represents the experience level of respondents who are employees of Towfiiq Company. The data reveals that 16% of the employees have less than 1 year of experience, 44% have experience between 1-3 years, 28% have experience between 3-5 years, and 12% have experience of 6 years or more. A total of 25 employees were surveyed for this data.
Job title
The table provides data on the job positions of 25 employees who resigned from Towfiiq Company. The data reveals that 48% of the resigning employees were junior staff, 32% were senior staff, and 20% were top management. A total of 25 employees were included in the survey.
Level cost management in tawfiiq general trading company
Objective 1 of the study was to find out the extent of cost management in tawfiiq general trading company. Level of cost management was assessed based on material cost management, labour cost
management, overhead cost management that was analyzed using descriptive statistics to generate mean and standard deviation. Findings were summarized in the Table 4. In more details was in appendix I
Table 5 : level of cost Management in towfiiq company
Item Aggregate Mean Standard Interpretation
Grand Mean & Standard Deviation 3.95 1.01 High
Material
Table 4 evaluates the level of cost management in Towfiiq Company, specifically focusing on the management of material costs. The table presents the aggregate mean score, standard deviation, and an interpretation of this metric based on responses from company employees
The management of material costs in Towfiiq Company has an aggregate mean score of (3.92), which is categorized as high. This high mean score indicates that employees perceive the company’s management of material costs very positively. The standard deviation of (1.02) suggests a moderate level of variability in the responses, meaning that while most employees view the material cost management favorably, there is some variation in their opinions.
This high score in material cost management reflects the company’s strong practices in controlling and optimizing material costs. The positive perception among employees suggests that Towfiiq Company has effective strategies and measures in place for managing material costs efficiently. This aspect of cost management is a significant strength for the company, contributing to its overall financial performance and operational efficiency. The feedback highlights the importance of continuing to prioritize and refine cost management practices to maintain and enhance this positive outcome.
Labor
Table 4 assesses the level of cost management related to labor in Towfiiq Company based on employee responses. The table shows an aggregate mean score of (3.90) with a standard deviation of (1.02), both interpreted as high.
The high aggregate mean score of 3.90 indicates that employees perceive the company’s labor cost management very positively. The standard deviation of (1.02) suggests a moderate level of variability in responses, indicating that while most employees agree on the high effectiveness of labor cost management, there are some differing opinions. Overall, this positive perception reflects the company’s effective strategies in managing labor costs, contributing significantly to its financial performance and operational efficiency.
Overhead
Table 4 evaluates the level of cost management related to overhead expenses in Towfiiq Company based on employee feedback. The table indicates an aggregate mean score of (4.04) with a standard deviation of (1.02), both suggesting a high level of cost management effectiveness.
The high aggregate mean score of (4.04) suggests that employees perceive Towfiiq Company’s management of overhead costs very positively. The standard deviation of (1.02) indicates a moderate level of variability in responses, suggesting some diversity in opinions among employees. However, the overall consensus is that the company excels in managing overhead costs efficiently.
This positive perception reflects well on the company’s ability to control and optimize its overhead expenses, which is crucial for maintaining financial health and operational efficiency. It indicates that Towfiiq Company has effective strategies and practices in place for managing overhead costs, contributing to its overall financial performance and competitiveness.
Financial performance in towfiiq company
Objective 2 of the study was to examine the level of financial performance in towfiiq company. The specific variables investigated under the construct of financial performance included financial efficiency, financial productivity this objective was analyzed using the mean and standard deviation reflects the extent to which the scores deviate from the mean as shown in the Table 5, details are in appendix II.
Table 6 : Financial performance
Financial performance Aggregate Mean Standard Deviation
Interpretation
Financial efficiency 2.43 1.16 Low
Financial productivity
3.09
1.71
Hight
Grand Mean & Standard Deviation 2.76 1,43 Moderate
Efficiency
Table 5 provides insights into the financial performance of Towfiiq Company, focusing specifically on financial efficiency as perceived by the respondents, who are employees of the company. The table presents the aggregate mean, standard deviation, and an interpretation of the financial efficiency metric.
The financial efficiency of Towfiiq Company has an aggregate mean score of (2.43), which falls on the lower end of the scale. This low mean score indicates that employees generally perceive the company’s financial efficiency as inadequate. The standard deviation is (1.16), which suggests a
moderate level of variability in the responses. While there is some variation in how employees view the company’s financial efficiency, the overall consensus is that it is lacking.
This low score on financial efficiency highlights potential areas for improvement in how Towfiiq Company manages its financial resources. It suggests that there may be inefficiencies or ineffective financial practices that need to be addressed to improve the company’s overall financial health. This feedback from employees could be crucial for the company’s management to consider when planning strategies to enhance financial performance.
Productivity
Table 5 provides an evaluation of the financial productivity of Towfiiq Company based on the perceptions of its employees. The table presents the aggregate mean score, standard deviation, and an interpretation of the financial productivity metric.
The financial productivity of Towfiiq Company has an aggregate mean score of (3.09), which is considered high. This high mean score indicates that employees generally perceive the company’s financial productivity positively. The standard deviation of (1.71) suggests a relatively high level of variability in the responses. This means that while the average perception is positive, there is a significant spread in how employees rate the financial productivity, with some rating it much higher or lower than others.
This high score on financial productivity reflects well on Towfiiq Company’s ability to generate financial outputs efficiently. Despite the variability in responses, the overall positive perception suggests that the company has effective practices and strategies in place that contribute to its strong financial productivity. This feedback from employees can be seen as an endorsement of the company’s financial performance and might provide a foundation for building further improvements and maintaining high standards in financial management.
Table 7 : relationship cost management and financial performance
FPCM r. value 0.544
p. value 0.005
Table 6 presents the results of the correlation analysis between cost management (SCP) and financial performance (IM) for Towfiiq General Trading Company. The correlation coefficient (r value) is 0.544, with a p value of 0.005.
The correlation coefficient of (0.544) indicates a moderate positive relationship between cost management and financial performance. This suggests that better cost management practices are associated with improved financial performance within the company. The p value of (0.005 is statistically significant (typically, a p value less than 0.05 is considered significant), which implies that the observed correlation is unlikely to be due to chance.
