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:
Organization that are survival conscious use budgeting as a
This helped organization achieve their overall objectives
It was also discovered that there is need for effective
budgetary control measures in organization this aids organizational survival.
It was also found that here is need for well defined long
range objectives in organization as short term objective derive from these long
Our 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
It is imperative that various level of management understand
the process through which budget preparation go It is also important to involve
subordinates in preparing divisional and departmental budgets as this ensure
Organization 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
It 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.
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.
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
control mechanism aimed at keeping budgets on course so that the budget
objectives are achieved over a period of time.
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.
conscious organization both public and private have objectives or goals which
they try to attain with resources available to them.