ABSTRACT
This study was undertaken to verify how much effective budgetary
control contributes organization survival. The objective are focused on
determining whether budgeting is an effective management tool in
organizations whether budgetary control has contributed to the success
and survival of organization as well as how organization handle their
budgetary process successful organization were used as reference point
in all situation. The choice of these organization was because they are
primary constituencies that have shown a consistent increase in profits
over the years in most cases for the past years hence used in this
study as reference point.
Careful and thorough analysis made revealed that:
vOrganization that are survival conscious use budgeting as a management tool
vThis helped organization achieve their overall objectives
vIt was also discovered that there is need for effective budgetary
control measures in organization this aids organizational survival.
vIt was also found that here is need for well defined long range
objectives in organization as short term objective derive from these
long term objectives
vOur findings also showed that management principle i.e. management
my objectives and management by exception could be of immense benefit
when applied to budgetary control.
The study made the following key recommendations among others.
vIt is imperative that various level of management understand the process through which budget preparation go
vIt is also important to involve subordinates in preparing divisional and departmental budgets as this ensure commitment
vOrganization that hitherto do not use budget as a standard in their
business operation are advice to make use of budget as this draws the
attention of the managers of a business more explicitly to the nature of
the problems they are facing and leads to more careful and critical
thinking and greater precision.
vIt was recommended that shorter budget review periods be adopted by
organization as this helps manger to detect problems and makes
corrections early before they become complex.
According to Jom Odetola Odeleye “budgetary control is the means of
determining the extent to which planned goals and objective are
attained”. Control ensures that action are taken where necessary and
possible, to bridge the gap between the budget and actual performance.
Budgetary control is therefore essential if the budgetary targets or
objectives are to be achieved.
Plans and actions do not always match some plans are made
to be executed in future present and future condition are never the same
a lot of forces i.e. economic, social, political, etc.
Act between the times a plan is made and the time it is to
be executed to cause variances. There is, then, the need for control
mechanism to monitor the plans, detect variances and initiate corrective
action so that the objectives of the plans are attained.
Budgetary control mechanism aimed at keeping budgets on
course so that the budget objectives are achieved over a period of time.
TABLE OF CONTENTS
Title page
Approval
Dedication
Acknowledgement
Abstract
CHAPTER ONE
1.1 Introduction
1.2 Definition of the terms
1.3 Statement of the problem
1.4 Objectives of the study
1.5 Scope and limitation of the study
CHAPTER TWO
Literature review
2.1 Introduction
2.2 The definition and nature of budget
2.3 The definition and nature of control
2.4 The concept, nature and objective of budgetary control
2.5 Budgetary control and management
2.6 Corporate and long range planning
2.7 Management by objective
2.8 Management by exception
2.9 Establishing a budgetary control system
2.10 The budget period
2.11 The budget structure
2.12 The limiting factor
2.13 Administration for budgetary control
2.14 The budget committee
2.15 The budget manual
2.16 Budgeting system
2.17 References
CHAPTER THREE
Findings, recommendation and conclusion
3.1 Findings
3.2 Recommendation
3.3 Recommendation
Bibliography
CHAPTER ONE
I.1 INTRODUCTION
Budgeting control is the process of ensuring the accomplishment of
budgetary plans by applying the needed corrective measures to deviation
i.e. moving away from the original plans it is also a process of
assigning responsibilities for the achievement of budget targets
measuring actual performance and comparing actual with planned
performance budgetary control is therefore as essential as the making of
budget.
All survival conscious organization both public and private
have objectives or goals which they try to attain with resources
available to them.
These objective or goals include survival in hostile and competitive business world.
Maximizing of profit as well as attaining a certificate
level of societal responsibility to community in which they operate.
Resources for the attainment of this objectives are limited hence the
need for planning.
Planning in form of budgeting a budget is plan of action which an
organization intends to execute within any given period it is not enough
to make which cannot be achieved. Therefore, the achievement budgetary
plans require control mechanism.
1.2 STATEMENT OF THE PROBLEM
The modern business world is characterized by intense competition,
new product development, use of advance technology, diversification etc.
all these are aimed at making success out of businesses.
But we know that not all business are successful. Some have
collapsed. Others liquidated while others have been swallowed by
stronger organization