BUDGETARY CONTROL A PANACEA FOR EFFECTIVE MANAGEMENT DECISION MAKING

  • Chapters:5
  • Pages:54
  • Methodology:Simple Percentage
  • Reference:YES
  • Format:Microsoft Word
(Accounting)
BUDGETARY CONTROL A PANACEA FOR EFFECTIVE MANAGEMENT DECISION MAKING
(A CASE STUDY OF ETERNITY LTD SAPELE)

ABSTRACT
          This research sought to determine the extent to which budgetary control serves as a panacea for effective management decision making. It was designed to probeinto the activities of eternity ltd, Sapele. The primary data collection was through questionnaire by the researcher. The data were analyzed with the aid of simple percentages. It was found that a good budgetary control system is an indispensable tool which is a panacea for management decision making and this can be achieved through the input of department or units head. Also discovered were the facts that imprecise specification of budgetary object does not facilitates quantitative evaluation of budgetary performance adequate revenue estimates complicate the problems and budget implementation improper implementation monitoring and control would affect the objectives of the budget thereby affecting management in their decision making. Also seen was the remark that input were not collected from department or unit heads the budget may not need to the desired result. The researcher in view of the findings made recommendation of impact of budget so as to formulate budget estimates according management ought to be realistic in its revenue estimates.

TABLE OF CONTENTS
CHAPTER ONE: Introduction    
    Background of the study
    Statement of the problem
    Purpose of the study
    Research questions
    Significance of the study
    Scope/Delimitation of the study
    Limitation of the Study
    Brief History of Eternit Limited, Sapele
    Operational definition of terms

CHAPTER TWO: Literature Review
    Introduction
    Meaning of Budgetary Control
    An Overview of Budgetary Control
    Problems Relating to Budgetary Formulation
    Budgeting as an Instrument of Socio Management
    Decision Making Process
    Types of Budget

CHAPTER THREE: Research Methodology
    Research Design
    Population of the study
    Sample size
    Sampling Techniques
    Research Instrument
    Validation of the Instrument
    Reliability of the Instrument
    Method of data collection
    Method of data analysis

CHAPTER FOUR: Data Presentation and Analysis
4.1    Data Presentation and Analysis   
4.2    Data Analysis
4.3    Discussion of Findings

CHAPTER FIVE: Summary, Conclusion and Recommendations
5.1    Summary of findings
5.2    Findings
5.3    Conclusion
5.4    Recommendation
5.5    Suggestions for Further Studies
        Bibliography
        Appendix
        Questionnaire                                                  

CHAPTER ONE
INTRODUCTION
    Background of the Study
Monetary and other financial sector policies is a fiscal programmed which perform specific role including, helping to stabilize the economy, aiding management in decision making, regulation of the supply to money through credit control measured and the rate of interest enhancing the efficiency of resources used in this role should however, be seen in varying dimension and prospective of the domestic economy management.

A budget is an annual plan of financial statement made by the government, which spelt out estimated government revenue and proposed expenditure for the coming financial year.

Accordingly, budgeting can be deemed as a process of taking deliberate measures as moving the relevant economy system from its current state towards a specific desired state. INSE quell to that, the revenue and expenditure programme as well as the fiscal monetary, trade and other development policies enunciated to move the socio – economic system from the present, state to the desired state. The success or otherwise of budgeting process obtaining in the security at any point in time.

The efficiency of budgetary is control as aids to management in decision making is the kernel of this research.

According to chartered institute of management accounting (CIMA), London has defined the budget as a financial aid for quantities statement prepaid and approved prior to a defined period of time, of the policy to be pursed during that period for the purpose of attaining a given objectives. It may increase income, expenditure and the employment of capital.

Horngren (2000) in his view said budgets are formal qualification of management plans. A plan of action expressed in figures. Thus budget express future plan in a formal and precise manner, budget makes possible a comparison of actual results with plans it makes uses of preformed financial statements.

Many people leads to relate the term budget with only expenditure that is the sum of money they intent to spend or are allowed to spend on a particular activity. To this group, budget could be constructed to mean that I have got to budget my salary for the month with a motive of spending only #40,000 for sanitary items and entertainments.

However, the term has a more positive meaning to it in the business world. Budget is an important tool for financial planning and control.

Statement of the Problem
The major problem with implementation of budget is the time it takes to compute the process as a result of policies in budgeting.

The main objectives of budget implementation with its control and monitoring function is to ensure that the policies and programmed are dutifully implemented in other to ensure the achievement of the desired result and raising revenue. Thus, the question arises. Why do management carryout the budgeting?

What are their needs, does it really play significant roles in decision making? All these problems are intended to be provided with solution at the end of this research

Objectives of the Study
The aims of the study is to definite the degree to which budget and budgetary control leads to the desired result of the organization. That is the study expects to ascertain whether budget control aids in decision making in the firm. The other objectives are as follows.
    To determine to what extent budget control aid Eternit Ltd Sapele, Delta State in decision making.
    To expand the existing revenue by exploring new sources.
    To determine to what degree the budget control implementation can yield the desired result.

Research Question
    Does budget control and decision making in Eternit Ltd Sapele Delta State.
    Is management budgetary control a yardstick to the attainment of organizational goals?
    Does budgetary control system dates back to the establishment of Eternit Nigeria Ltd Sapele, Delta State?
    To what extent does effective budgetary control system result in high profitability?

Significance of the Study
The choice of this study is to provide information to government, management of both private and public sectors with plans on how to achieve their desired objectives.

The significance of this study provides a basic for budgetary control as a panacea for effective management decision making. It will aid Eternit Ltd Sapale, Delta State in decision making. Budgetary control will help the company to achieve their set goals through implementation of effective budgetary control system.

Scope of the Study and Delimitation of the Study
For the purpose of this study, budgetary control will be limited to Eternit Ltd Delta State.

Limitation of the Study
In any research work, there is always problem or limitation. This study is not an exception from some of the problem encountered in course of this which includes.
    Insufficient time allocated fro the project work
    Lack of material data on the subject matter
    Inadequate indigenous literature on the subject matter
    Insufficient financial recourses for the completion of the study.
        Brief History of Eternit Ltd Sapele

Eternit Ltd is a member of a multinational organization Etex group with its head office in Brussels and is one of Nigerian major producers of high quality fiber cement building materials.

It was established in 1994, and has undergone significant development which enables it to offer a wide range of high quality roofing and ceiling sheets and tiles together with a variety of complementary accessories. The factory is located in Sapele, Delta State Nigeria.

The range of products manufactured by the company covers essentiality fiber- cement roofing and ceiling materials, concrete roofing tiles and light – guage valganized roof trusses.

Eternit, mindful of the dynamics of the market, changed its technology in product formulation and in year 2001 replaced. The asbestos fiber content in product offering with synthetics fiber – petroleum (Eternit new technology products). Thus today, Eternit products are completely hazard free.

Awards from decorative studies
    Year 2000 decorative ceiling tiles award by the chattered institute of marketing of Nigeria.
    Year 2001, master builder award by Nigeria institute of arch built, cross river state chapter.
    Year 2002, award of excellence by the Nigeria institute of quality surveyors Ondo State chapter.
    Arch built 2004 best participant (local material sourcing) by the Nigeria institute of architects.
    2005 best participant award by the Nigeria institute architects.
    Cement award on excellent production of building materials components by the department of quantity surveyors federal Polytechnics Afikpo.
    Year 2005 award of excellence by West African Portland cement.

Definition of Terms
    Budget: A financial or quantitative statement prepared and approved prior to define period of time of policy to pursued approved, that period for the purpose of attainment or attaining a given objectives. The budget is a financial statement of expected income and expenditure of an individual the firm or the government in a Nigeria period of time.
    Budgetary control: This is the establishment of budget relating the responsibility of executive to the requirement of policy and the continuous comparison actual with budgeted result, whether to secure by individual to objectives of that policy or to provide a basis for its revision.
    Decision making: This can be defined as making a choice between alternative courses of action, such alternative are often characterized with uncertainties. The manager making use of various means of evaluation of alternative settles on the best alternative.
    Budget manual: This is a document which set out standing instruction governing the responsibilities of persons and the procedures from and records relating to the preparation and use of budget.
    Is defined as the process of utilization materials and human resources to accomplished designated objectives, it also involves the organization, direction, co-ordination and evaluation of people to achieve these goals.
    This is a way of putting things in an orderly manner or an organized way of doing things.
    The budgeting committee: This is a body that administers the budgeting process. It is usually composed of members who are drawn from top management of all division in the organization.
    The budget time table: This is a plan of the timing of the process of budget from the moment ob objectives setting up to the adoption and communication of the budget.
    Financial terms: Budgets are generally presented in terms of monetary values as the monetary unit is a common denominator of making the different activities and operations expressed in the heterogeneous unit.
    Production budget: This represents an estimates of quantity of goods that most be manufactured during the budget period factors such as sates budget, budgeted stock requirement, plant utilization capacity, purchase of components etc. are adequately taken into consideration.                                                               
Share This

Project Details

Department Accounting
Project ID ACC0620
Price ₦3,000 ($9)
Chapters 5 Chapters
No of Pages 54 Pages
Methodology Simple Percentage
Reference YES
Format Microsoft Word

500
Leave a comment...

    Project Details

    Department Accounting
    Project ID ACC0620
    Price ₦3,000 ($9)
    Chapters 5 Chapters
    No of Pages 54 Pages
    Methodology Simple Percentage
    Reference YES
    Format Microsoft Word

    Related Project Topics

    A CASE STUDY OF NIGERIA BREWIERIES ABSTRACT As a result of rapid increase in the management problems of business organisations and also millions of naira wasted at project sites and the collapse of our industrial... Continue Reading
    • Type:Project
    • ID:ACC0086
    • Department:Accounting
    • Pages:48
    • Chapters:5
    • Methodology:nil
    • Reference:YES
    ABSTRACT The scarcity of human and material resources, the competitive nature and the uncertainty about future has made both government and most modern business enterprises to find away of improving upon them performance to... Continue Reading
    • Type:Project
    • ID:ACC0165
    • Department:Accounting
    • Pages:24
    • Chapters:3
    • Methodology:nil
    • Reference:YES
    (A CASE STUDY OF ETERNIT LTD, SAPELE) ABSTRACT Budget and budgetary control system as a tool for effective decision and planning in Nigeria recently starting receiving immense attention in most national dallies, since... Continue Reading
    • Type:Project
    • ID:ACC0619
    • Department:Accounting
    • Pages:54
    • Chapters:5
    • Methodology:Simple Percentage
    • Reference:YES
    BUDGET AND BUDGETARY CONTROL AS A TOOL FOR EFFECTIVE DECISION AND PLANNING IN MINISTRIES AND PARASTATAL (A CASE STUDY OF MINISTRIES AND PARASTATAL IN IMO STATE) ABSTRACT Budget and budgetary control as a tool for effective decision and planning in ministries and parastatals. The researcher is... Continue Reading
    • Type:Project
    • ID:ACC0254
    • Department:Accounting
    • Pages:84
    • Chapters:5
    • Methodology:Chi Square
    • Reference:YES
    A CRITICAL ANALYSIS OF BUDGETARY CONTROL: ITS EFFECTIVENESS AND EFFICIENCY IN A NON PROFIT MAKING ORGANIZATION A CASE STUDY OF N.C.R.I BADEGGI PROPOSAL This research work will be A very crucial study for non- – profit making organization in Nigeria. The role of non – profit making organization... Continue Reading
    • Type:Project
    • ID:ACC0337
    • Department:Accounting
    • Pages:70
    • Chapters:5
    • Methodology:Chi Square
    • Reference:YES
    (A CASE STUDY OF BETA GLASS PLC, UGHELLI) ABSTRACT The focus of the research project is to examine the budgetary control system of Beta Glass Plc to access its effectiveness and make necessary recommendations for... Continue Reading
    • Type:Project
    • ID:ACC0621
    • Department:Accounting
    • Pages:60
    • Chapters:5
    • Methodology:Simple Percentage
    • Reference:YES
    MARGINAL COSTING AS AN ESSENTIAL TOOL FOR DECISION MAKING IN A MANUFACTURING COMPANY FOR DECISION MAKING IN A MANUFACTURING COMPANY (A CASE STUDY OF ANAMCO ENUGU) PREFACE This report revealed the result of an investigation into the marginal costing Technique as an essential Tool for Decision... Continue Reading
    • Type:Project
    • ID:ACC0508
    • Department:Accounting
    • Pages:106
    • Chapters:5
    • Methodology:Chi Square
    • Reference:YES
    (A CASE STUDY OF EMENITE COMPANY) PROPOSAL Accounting is the process by which the profitability and solvency of company can be measured. Accounting provides some basis information needed in making business decision. it is clear that a... Continue Reading
    • Type:Project
    • ID:ACC0042
    • Department:Accounting
    • Pages:74
    • Chapters:5
    • Methodology:chi saqure
    • Reference:YES
    ABSTRACT This study examined financial information as a tool for management decision making. In order to actualize the objectives of the study, various literature and theoretical issues were discussed. The instrument used for the... Continue Reading
    • Type:Project
    • ID:ACC0034
    • Department:Accounting
    • Pages:98
    • Chapters:1-5
    • Methodology:simple percentage
    • Reference:YES
    ABSTRACT This study examined financial information as a tool for management decision making. In order to actualize the objectives of the study, various literature and theoretical issues were discussed. The instrument used for the... Continue Reading
    • Type:Project
    • ID:ACC0811
    • Department:Accounting
    • Pages:81
    • Chapters:5
    • Methodology:Z Test
    • Reference:YES