BACKGROUND OF THE STUDY The preponderance of a large number of small scale industries in Nigeria suggests that the situation offers considerable opportunities for the intensive development and improvement of this sector, with adequate injections of technology, improved management, efficient marketing techniques and so away (Echu, 2002). The contribution of small industries to development is generally recognized. Small industries face numerous obstacles that limit their long-term performance and, invariably, their development and growth. Some of the causes of failure have been traced to poor management and lack of knowledge of the proper accounting system used by these industries (Akande, 2011). Manufacturers use various accounting systems that require timely, relevant and accurate measurement of costs, resources consumed in product production and managerial decision making. Since the accounting system used by industries is one of the key elements that determine industrial growth and profitability, they must use an accounting system that allows them to determine the sales volume, product cost and profitability at any given time (Okoli, 2011). Despite these efforts, most small-scale industries in Nigeria continue to fail, mainly due to the lack of sound professional principles that can inform the activities and decision-making of the sector. Small-scale industries cannot boast professional accountants who can provide cost accounting information on the industry's activities and decision-making processes. It is recognized that adequate cost accounting information is important for the successful management of an industry, large or small (European Commission -Enterp...... half of the document ......it rains for small businesses .Journal of European Industrial Training Vol.2, 17.Lucey, T. (1996) (5th edition). : Letts EducationalAldine Place.Magbabeola, J. O., Magbagbeola, E. O. and Adetoso, J. A. (2010). operations research tools to enhance small-scale industry performance growth in national development in sub-Saharan Africa: CaseStudy of Nigeria Continental Journal for Social Sciences , S., & Kleiner, B.H. (1992). .Journal of Industrial Management & Data SystemsVol.92(4)..Okoli, B.E. (2011).Assessment of accounting systems used by small businesses in Nigeria Company Secretaries of India. (2013). Dwarka, New Delhi: Delhi IT Services.