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
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.....
================================================================
Item Type: Postgraduate Material | Attribute: 93 pages | Chapters: 1-5
Format: MS Word | Price: N3,000 | Delivery: Within 30Mins.
================================================================
No comments:
Post a Comment