International Journal of Academic Accounting, Finance & Management Research (IJAAFMR)   Year: 2022 | Volume: 6 | Issue: 7 | Page No.: 28-32 Cost Components and Performance of Firms in the Nigerian Industrial Sector Download PDF ONUORAH, A.C (Ph.D.) Abstract: This paper examined the linkage between cost components (CMS) and the Nigerian industrial sector's performance. Variouscost practices proxies considered are:(i)direct material cost (DMC); (ii) direct labour cost (DLC), and overhead cost (OVC) while firm performance proxied by Return on investment (ROI). The study sourced information for the annual reported of the Nigerian industrial sector from 2011 to 2020. The study used the panel methodological approach to the inclusion of fixed effect, random effect and Ordinary least square The result evidenced that efficient CMS have high statistical significant effect on the performance of the Nigerian industrial sector. Hence, we can now conveniently conclude that efficient CMS is critical to the attainment of the industrial sector's central objective of profit maximization. To this end, for Nigeria firms to amass more wealth, they must place more emphasis on DMC; DLC, and OVC. Lastly, cost reduction strategies must be upheld in the Nigerian industrial sector.