Cost Management Techniques and Financial Performance of an Organization: A Case Study of Stanbic Bank Mbale Branch
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Date
2024-06-25
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Uganda Christian University
Abstract
This study investigated the Cost management techniques and financial performance of an organization in Mbale Town, focusing on the cost management and financial performance of Stanbic Bank Mbale branch. A cross-sectional research design was employed, to explore the relationship between working cost management and financial performance. The study targeted a population of 100 registered banks, with a sample size of 85 respondents selected through Salant & and Dillma, 1994 sample size table. Data was collected using questionnaires and analyzed using SPSS software.
The findings reveal a strong consensus among respondents regarding the Effective cost management techniques which are pivotal to enhancing the financial performance of organizations, particularly within the banking sector. This study examines the relationship between cost management strategies and financial performance in a case study of a major bank. The research explores various cost management techniques, including activity-based costing, lean management, and budgeting controls, to determine their impact on the bank's profitability, operational efficiency, and overall financial health. Through a comprehensive analysis of financial statements, interviews with key management personnel, and a review of internal cost control documents, the study identifies the most effective practices that contribute to sustainable financial performance. The findings reveal a significant positive correlation between the implementation of robust cost management techniques and improved financial metrics such as return on assets (ROA), return on equity (ROE), and net profit margins. The study concludes with recommendations for banking institutions to adopt a strategic approach to cost management, emphasizing the integration of technology and continuous process improvement to achieve long-term financial stability and competitive advantage.