Strategic Cost Management and Profitability of Manufacturing Firms in Ogun State

This study investigates the effect of strategic cost management on the profitability of manufacturing firms in Ogun State, Nigeria. The South West zone, particularly Ogun State, is home to one of Nigeria's largest manufacturing clusters due to its proximity to Lagos and its industrial-friendly policies. The research adopts a descriptive survey design, targeting finance directors, cost accountants, and plant managers in twenty manufacturing firms located within the Ota, Sagamu, and Agbara industrial areas. A total of 115 respondents were selected through purposive sampling. Structured questionnaires and financial records were used for data collection. Data analysis was performed using descriptive statistics and multiple regression. Findings indicate that firms implementing activity-based costing and value chain analysis as strategic cost tools achieve significantly higher net profit margins compared to firms relying exclusively on traditional costing methods. The study also reveals that cost reduction strategies focused on process efficiency rather than workforce reduction are more sustainable and less disruptive to operational output. Strategic supplier relationship management is identified as a key cost management lever that reduces input costs without compromising product quality. The research concludes that Ogun State manufacturers must embed strategic cost management into their broader organizational strategies for sustained profitability. Keywords: strategic cost management, profitability, manufacturing firms, Ogun State, activity-based costing.