TABLE OF CONTENT
TITLE PAGE PAGES
LIST OF TABLE IV
- INTRODUCTION 1
- BACKGROUND OF THE STUDY 1
- STATEMENT OF THE PROBLEM 3
- OBJECTIVE OF THE STUDY 4
- RESEARCH QUESTION 5
- HYPOTHESIS FORMULATION 6
- SIGNIFICANT OF THE STUDY 7
- SCOPE OF THE STUDY 7
- LIMITATION OF THE STUDY 8
- LITERATURE REVIEW 10
- INTRODUCTION 10
- BUDGETING DEFINED 12
- PURPOSE OF BUDGETING 12
- THE BUDGETARY SYSTEM 14
- TYPE OF BUDGETING 17
- BUDGET TERM 21
- BUDGET EXCUSION 23
- BUDGET REVIEW AND CONCLUSION 24
- RESEARCH METHODOLOGY 28
- INTRODUCTION 28
- POPULATION OF THE STUDY 28
- IDENTIFICATION OF SAMPLE SIZE 29
- DATA COLLECTION METHOD 29
- PROCEDURE FOR ANALYSIS DATA COLLECTED 31
- RESEARCH DESIGN 31
- ADMINISTRATION OF DATA COLLECTION INSTRUMENT 32
- HISTORICAL BACKGROUND OF THE CASE STUDY 33
- DATA PRESENTATION ANALYSIS AND INTERPRETATION 36
- INTRODUCTION 36
- PRESENTATION AND ANALYSIS OF DATA ACCORDING TO RESEARCH QUESTION 36
- TESTING OF HYPOTHESIS 43
- RESULT FINDINGS 48
5.0 SUMMARY, CONCLUSION AND RECOMMENDATION
- SUMMARY 55
- CONCLUSION 56
- RECOMMENDATION 57
- BACKGROUND OF THE STUDY
Budgeting concept is as old as man. We learn from history that the warmly man had to determine what ever he needed in advance before it eventually materialized.
This is very obvious in the present day lives of individual of state or a nation. As a nation plan ahead in term of revenue and expenditure within a specified period of time. So also an individual or state conceptualized anticipated revenue and disbursement within a specified period of time.
Every establishment, be it public or private when planning, find it necessary to incorporate budget and institute a proper executive for the purpose of translating policies, coordinating activities as well as financial control in order to achieve the last result.
Budget planning is the process of preparing detailed short term plans know as budget for the function activities and departments of the organization and converting the long term corporate plan into action.
The budgetary process is an integral part of both with planning and control. Too often budget are associated with negative penny pending control activities where as the full process is much broader and more positive than that. Budgeting is about making plans for the future implementing those plans and monitoring activities to see whether they conform to the plan.
To do this successfully, it requires full top management support, co-operative and motive middle managers and staff, as well as organized reporting system.
The need for control system and performance report has become over more critical in every years as a result of excessive budget restriction even for the manufacturing and service organization.
Control functional operation of any business organization depends certain essential elements such as:
- There must be an information system that records programs of an activity or group of activities for a specific length of time.
- A structural organization element to which the activity is assigned.
- A formed reporting document for generating FEEDBACK of achievement level to the supervisor or manager of the organization
- A planned pre-determined activity measure against which actual achievement measure can be compared.
- A decision making capacity that exists within the organization element or unit to take action that will bring achievement level in line with the planned level.
The above five element are of paramount important to the concept of control in a nutshell, a budget is a parameter which measure, firms e.t.c while planning invest systematically looking into the future so that decision can be made to day which will bring the organization its desire results.
Finally, existing budgetary planning and implementation method in coca-cola bottling company are examined. Bits strength and weakness and suggestion with recommendation are give as to how they could be improved.
- STATEMENT OF THE PROBLEM
Lack of proper planning, inadequate budgeting skills and non-judicious follow-up of budget lead to over-spending habit mostly exercised by management. This is the effective or consequence are as follow:
- delay by management in preparing and approving budget
- there exit an opportunity for misappropriation
- actual expenditure cannot be as constrained
- budget and actual expenses and income are bound to produce abnormal various and variance cannot be used effectively in measuring performance.
Moreover, budget planning implementation and execution of management decision of a company often influence by individual personalities and the state of cultural development.
The fashion which budget are used in performance and evaporation tend to influence the behaviors and attitude of the participation as enunciated by I kenis, that is, appointive and consequently, a negative attitude.
A supportive approach will result in positive attitude and with high level of motivation. This is very good food of thought to companies expecting to survive by achieving their objective.
1.3 OBJECTIVES OF THE STUDY
The aim of this study is to conduct on the effectiveness of budgetary control as an effective tool for management planning.
The study also determines the effect of budget planning on coca-cola bottling company. The research embarked upon is hoped to provide a base not only for managers but also for organization as a whole for assessing their performance problem findings, constraint or limitations imposed by using budget planning and executing planned budgets.
The study will further go a long way in improving the attitude and performance of the individuals, employees and employers in achieving the over all organizational budget goals.
The research is also designed to help investors financial institution and government e.t.c in budgeting and planning for assessing their performance.
Finally, the research will review necessary literature on budgeting and budgetary control type of budget and some budget terminology.
- RESEARCH QUESTION
Is there relationship between budgeting and budgetary control?
What extent can budgeting and budgetary control be used as tools in planning and control in an organization?
What is the problems encountered by organization in uses of budgeting and budgetary system.
- HYPOTHESIS FORMULATION
Hypothesis are logical supposition or on educational conjunctive that will aid to solve the problem established earlier in this research.
The hypothesis will be tested to prove major problems which will be represented, by null hypothesis (H0) and the alternative hypothesis (Hi)
An attempt to research into budgeting and budgetary control as an effective tools for planning and controlling and it will generate four set of hypothesis which intend to subject to critical test and analysis by using table / percentage method and chi square distribution.
H0 budgeting and budgetary control are not related and united
Hi : budgeting and budgetary control are related and united
H0 : departmental budget are often seen as non-important
Hi : departmental budget are often seen as important
H0 : budgetary control is not easy to achieve
Hi : budgetary control is easy to achieve
H0 : inefficient planning skills do not hinder budgeting
Hi : inefficient planning skills hinder budget
- SIGNIFICANT OF THE STUDY
The success of any business depends on the dynamic managerial performance and efficiency crown with prudent budget planning and proper execution. Under a competitive environment, the ability of a firm to generate sufficient profit and competency in planning for the future rest largely on the quality of its budgeting and budgetary control. It is expected in this research that the findings and recommendation will help to show how budgeting process provide for the co-ordination and how it forces managers to think of the relationship of their function with others