Cost Management Strategies and Financial Performance of Kapkoros Tea Factory County, Kenya in Bomet
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Date
2023-11
Authors
Journal Title
Journal ISSN
Volume Title
Publisher
Kenyatta University
Abstract
Building internal capacity, condueting energy audits, (raining energy management teams, facilitation of new technology in tea factories has been some of the sgveral interventions made to decrease the cost of production and ensure more money in the pockets of tea growers, However, a decline in tea prices, bonuses and lr.lcrcasâc in cost of production proven to be a challenge. Therefore, this study sought to investigate the effect of cost management strategies on the financial performance of Kapkoros Tea Factory in Bomet County, Kenya. The specific objectives of the study were to examine the effect of inventory cost management, labor cost management and overhead cost management on the financial performance of Kapkoros Tea Factory in Bomet Coupty, Kenya. The study was guided by the balance Scorecard model, theory of constraints
population
and lean inventory theory. The study adopted descriptive research design. The target
respondents
was Kapkoros Tea Factory in Bomet County, Kenya. The total number of was 350 respondents who were employees in the marketing, production, personnel and finance departments of the factory. Respondents in this study were
management
found that inventory
have
cost management, labor cost management and indirect cost
Capukoros tea factories,
a significant positive impact on the financial performance of
that inventory Regarding inventory cost management, the study concluded
optimal inventory
cost
to
management increases accuracy by ensuring that factories have fulfill orders. When it comes to managing labor costs, the study