introduction
this chapter covers the background against which data was gathered. it discusses the research design, study population, sampling (size and technique), Instruments of data collection, Data analysis tools, ethical consideration
Research design
This study will be carried out through a descriptive research design basing on quantitative and qualitative approaches. In general, research methodology is the general plan and structure for the shape of the research used to achieve the main points that important of the study. In the point that this research will view is to assess the effect of cost management practice on financial performance in towfiiq general trading company Research design provides a framework for the collection and analysis of data so; the study used conclusive research design especially descriptive design to get a deeper information and high analytical approach to have achievement and to develop solutions target population
the population targeted will reached up to 27 employees in towfiiq general trading company in garowe somalia. because they will be a base of the study and provided the relevant answers to the research questions.
sample size
solven formula was being used to this study to determine the sample size. sloveneβs formula were using to obtaining the sample size. denoting by (n) solvene formula is given by
π΅
π = π + π΅ππ
where n= sample size n= target population
e= level of significance/marginal error 5% n= 27 e= 5%=0.05
π =
π = 1.
n= 25 respondents
Table 1 : a sample of 25 will be chosen
designation sample size (n) population (n) percentage
top management 5 6 20
senior employees 8 9 32
junior employees 12 12 48
grand total 25 27 100
sampling technique
this study will be used probability sampling method, because of finite and registered population. the procedure selected in this study will be stratified random sample, on the other hand, first divides the population into smaller groups, or strata, based on shared characteristics. sampling method is one of the important factors which determines the correctness of survey results. (samaddar et al.,
n.d. 2020).
research instrument
The study used a questionnaire as a tool for data collection, structured with open-ended and close- end questions. The questionnaire was constructed in such a way that it had three sections. Part A: had the bio data of the respondents, part B: contained the independent variable of the study that was cost management and part C: contained the dependent variable of the study that was financial performance. The questions were developed on a five (5) point LLikerβs scale thatβs; strongly disagree, disagree unsure, agree and strongly disagree. Closed ended questions were used because they was the only means through which accurate information could be drawn out in the study of this kind, where a variable under investigation requires statement of fact which cannot be given because organization are not free to disclose matters of inventory management policy openly. The questionnaire was administrated to the respondents after getting official permission from the
respective authorities in the organization. Each of the organization had a clearly marked questionnaire with its names on to ensure proper management of the information.
Table 2 : shows how the data interpreted
Response Standing for Scale Mean range Interpretation
SA Strongly agree 1 4.20-5.00 Very high level
A Agree 2 3.40-4.19 high level
N Not Sure 3 2.60-3.39 Moderate
D Disagree 4 1.80-2.59 low level
SD Strongly disagree 5 1.00-1.79 Very low level
Class interval = πβπ β 0.01 = 0.80 β 0.01 = 0.79
π
validity and reliability of the instrument validity
Data validity refers to the ability of instrument to collect justifiable and truth data i.e. the extent to
which the instrument measures what is the intended to measure. Before the researchers carried out the study a pilot study has been conducted among the sampled population, the main objective was to contact worthiness the research instrument to generate correct and relevance data. The item that have found in appropriate in answering the research questions and attaining the research goals to improve the quality and the appropriateness of instruments. in this research validity of the respondentsβ instruments was established through questionnaire and will be assesses validity of each question or group of questions, however to increase validity of the questions in this research: the research team will provide the main definitions of cost management practices and financial performance in Towfiiq general trading co in garowe Somalia to avoid possible different interpretations of the main concept. the contents validity index (CVI) was calculated as following CVI= Number of questions declared by supervisor were answered correctly x 100 Total
number of questions carried by field
ππ
πππ = X 100 = 92.0%
ππ
Reliability
Reliability refers to the degree of consistency with an instrument measure the attribute it is designed to measure. The reliability of data collection was established test- test method through Cross sectional design which indicates researchers were collected data from respondent by time with enough time interval we printed 10 questionnaires to make test-retest method. One questionnaire was different and the rest 9 were answered the same as previous questionnaires. So, the reliability of our research was (10-1= 9/10*100% = 90%).
data gathering procedure
first the researcher wedre got an introduction letter was obtained from the east africa university, for the researcher to solicit approval to conduct the study form respective respondents. researcher was appointed a research assistant who would assist in the data collection, brief and orient them in order to be consistent in administering the questionnaire. during the data collection the researcher was asked the respondents to sign the informed content, and after receiving an introductory letter frdom the office the researcher request member of population to fill questionnaire with un-bias and honestly. and also requested to the respondents to answer kindly all questions, the researcher checked the completeness of all answers that whether the respondents answered the entire questionnaire.
data analysis
Data analysis is as a process of cleaning, transforming, and modeling data to discover useful information for data collection and making decision. The purpose of Data Analysis is to extract useful information from data and taking the decision based upon the data analysis.
Data analysis tools make it easier for users to process and manipulate data, analyze the relationships or correlations between data sets, and it also helps to identify patterns and trends for interpretation. Data Analysis Process is nothing but gathering information by using proper application or statistical tools which allows you to explore the data and find a pattern in data analaysis.
The data collected was processed and analyzed using Statistical Package for social science (SPSS) in order to come up with frequencies and percentages and the relationship between the independent variable and dependent variable was established and tested using Pearson correlation. Micro soft word and excel were used in drawing tables so as to clearly present the findings
ethical consideration
in this study bearing in mind the ethical issues the researcher provide to the respondents with the necessary information as regards the main purpose of the research, expecting duration and procedures to following, and be in position to keep privacy and not disclose the confidentiality of respondents and researcher teamβs responsibility.
