BUDGETING AS TOOL FOR PLANNING AND CONTROL IN A MANUFACTURING FIRM (A CASE STUDY OF NIGERIAN BOTTLING COMPANY PLC, ENUGU)

ABSTRACT
The increased complexity of the society and high level of competition in the business world has made it imperative for business organization to do serious planning and control in order to survive volatile business climate. This research work studied budgeting as a tool for planning and control in a manufacturing firm with particular emphasis on Nigerian Bottling Company PLC, Enugu. The main objective of this study was to x-ray the relevance of budgeting as tool for planning and control in manufacturing firm. And also to ascertain the effect of non-existence of budget on the performance of business organization. The methodology adopted were simple percentage and chi-square statistical methods to deduce general statement about the effect of budgeting on planning and control is relevant for the survival of manufacturing companies. Also, budgeting is a tool for measuring efficiency and performance in manufacturing firm.
The recommendations put forward was that management of every organization should prepare budgeting and adhere strictly to the provisions of the budget. There should also be a regular and periodic review of the budget in order to detect variations. The research work will serve as a template to managers, entrepreneurs, creditors, and employees on how to effectively allocate scarce resources judiciously through budgetary planning and control.

CHAPTER ONE
1.0  INTRODUCTION
The success of every organization depends largely on effective planning and control. Planning and control are pre-conditions for the attainment of organizational goals. The objectives of organization are realized through a careful plan of action and control. Both public and private organizations are established for the purpose of achieving specific objectives. Budgetary planning and control are managerial functions responsible for setting specific targets or expectation to be met. Budgeting is not only a management planning device but also a basic accounting model for managerial control. In manufacturing firm, planning and control are used to set profit target, revenue, prices and cost.


Hence, planning is the process of deciding ahead of time, what a firm seeks to achieve and how it seeks to achieve them. Planning is future-oriented. Control on the other hand, is the evaluation of performance and the putting in place of corrective measure where necessary. Control seeks to compare plans with actual goal realized. Control entails restrain, supervision, safeguarding, checking or even to correct deviations.

1.1  BACKGROUND OF THE STUDY
In a manufacturing industry, and other business organization, top or line managers are faced with problems of limited resources due to organization policies. Such policies may include income and expenditure policies, raw material utilization policy, purchasing policy, production policy, labour and time limit policies, it is viewed against the above mentioned background that the concept of budgeting as a tool for planning and control is pertinent. It is about making plans for future, implementation, and monitoring of activities to see whether it conforms to the plan.

Budget is thus, a formal expression of managerial plan in quantitative and monetary terms encompassing different phases of operation aimed at assisting management in the realization of organization’s objectives. Budgeting is a financial and quantitative interpretation, prior to a defined period of a policy to be implemented in order to achieve a given objective.....

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Item Type: Postgraduate Material  |  Attribute: 93 pages  |  Chapters: 1-5
Format: MS Word  |  Price: N3,000  |  Delivery: Within 30Mins.
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