The increasing complexity of the business
environment has necessitated a systematic approach to the impact of
budgetary control on the profit of business enterprise.
Based on business philosophy, nationally or internationally corporate goal in
centered on high production with minimal production cost and hence profit
maximization. Sufficient profit is required so that the rating of the
efficiency of the business organization will be high.
The owners of the business will expect their rewards as dividends, the
creditors require payment, the employees of the business organizations will
demand their remunerations and the social responsibility to the community where
they are located. All of the demands have to be met form the cash inflow.
As a result, the need arises of the management of the business
enterprises to plan their operation and channel their resources into projects
that would yield the highest profit.
1.2 THE STATEMENT OF THE
With regards to the problem enumerated in the statement of the problem, this
study is aim at the following:-
Establishing to interviews relationship between budgeting controls and profit.
Creating a better awareness of the indispensability of controls in the
consistent profit maximization.
Adding to the existing knowledge, the impacts of budgetary controls on profits.
Making useful recommendations on their measures that could executed for
OBJECTIVE OF THE STUDY
The following objectives of
this study which the researcher have designed to achieve are;
To know the aims and objectives of budgetary control.
To knows the problem in monetary control
To know the budgetary control and profit.
To determines the qualities of good budgetary control.
To know the success and application of budgetary control.
1.4 SIGNIFICANCES OF THE STUDY
A budget is thus a standard with which to measure the actual achievements of
the business enterprises.
While budgetary control is the planning in advance of the various function of a
business enterprises so that the business as a whole can be controlled.
Therefore, budget and monetary control are inseparable.
High mortality rate of business enterprises in the present phenome have been
traced to non application of budgetary controls. With little or no
consideration for the influence controls have an profits, some business
enterprises move from one accounting period to the other with in adequate
controls. As a result, their profit for a number of years have little or
no remarkable variation.
Hence the business philosophy is some what defeated and meeting the
organization obligation have become a problem.
The organization that manages to establish controls pursuer them so carelessly
that the whole substratum collapses. These problem have persisted and is there
need for an in depth study on the topic to ease these problems on one
hand and to eradicate them on the other hand arises.
TERMS AND CONDITIONS APPLY
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