Budgeting is the most comprehensive
management tool for planning and control in any organization. New
management techniques which involve meeting the increasing complexities
of business today in the society is budgeting, and many things, have
been written and said about it in books, journals magazines and
newspapers. In fact it attracts very much human material attention.
These reasons make the need for this research into the role of budgeting in private sector management very pertinent.
Budgeting is futuristic in nature. The
further is subject to change while change is he only thing that is
constant. Therefore, any attempt to quantitatively state the future is
an approximation and then budgeting is said to be free of emotion.
1.2 OBJECTIVE OF THE STUDY
This research is aimed at accomplishment
of some objectives. It will examine and highlight the roles of
budgeting and will also assess the impact of inflation and other
unforeseen variables on the usefulness of budgeting in the private
sector management in Nigeria.
To achieve these, the research has to:
a) Ascertain the role of budgeting in private sector management.
b) Ascertain the system of budgeting in private sector management.
c) Apprise the role of budgeting in situation of frequent erratic changes.
d) Analyze the impact of the role of budgeting in private sector management.
e) Ascertain whether budgeting accomplishes its practical roles in the private sector management.
General, this project is aimed at
arocising interest on the role of budgeting in private sector management
in Nigeria. The aim is that enough consciousness towards budgeting will
be awakened by this project to improve the effectiveness of the role of
1.3 SIGNIFICANT OF THE STUDY
This term paper has varying level of
significant various categories of its users and readers who may wish to
reference it from time to time.
One significant is that it forms of a
major part of the final examination of the researcher for the award of
national diploma in accountancy. It also affords the researcher a better
understanding and application of he subject matte of “the role of
budgeting in private sector management”. This project provides
beneficial insight into the nature and role of budgeting to managers;
accountants, bankers and even insurers.
This will enhance effective budgeting in their respective organizations.
It also provide material guide and will
therefore be of immense benefit to anybody who may wish to undertake a
critical review of this work and relative topics in future.
1.4 LIMITATION AND DELIMITATION OF THE STUDY
The scope or delimitation of this
research is basically on the role of budgeting, system of budgeting and
how the role of budgeting is feel in the private sector management. It
is also on how to accomplish the practical roles of budgeting in the
private sector management.
1.5 DEFINITION OF TERMS
The following terminologies are defined to reflect their meaning in this project.
1) Role: This means the functions and duty which a person or a thing performs or ought to perform or act.
2) Private sector: This refers to as business firm or profit making concerning one person or group of persons.
3) Budget: This means
estimate of probable future income and expenditure or the financial or
quantitative statement prepared prior to defined period of time or the
policy to be pursued during that period for the purpose of attaining a
given objectives, they include income, expenditure and employment of
capital. Budget period is usually one year.
4) Budget control: This is a control by the use budget.
5) Budgeting: It is used
to mean that act of preparing and using these financial and quantitative
statements to aid management.
6) Planning: This is the
delineation of goals, predictions of potential results under various
ways of achieving goals, and a decision of how to attain desired
7) Management: This is
the process of curbing and utilizing of or of allocating an
organization, dissenting and controlling for the purpose of producing
output desired by customers so that the original objective are
accomplished. Those who carry out the activities defined above are the
8) Organizing: This is
the combination and coordination of people, work to be done and physical
factors into a meaningful structures that will contribute to an
achievement of goals.
9) Directing: This is
quenching or actualizing personnel in a way that is perceived to be
necessary for accomplishing organizational goals through communication,
motivation, leadership, training and personal influence.
10) Control: is action that
implement the planning direction and performance evolution that provides
feedback of the results.
11) Strategy: This is applying once best or tactics to complete successfully ie, competitive advantages