Business Organization is facing shift competition and as a result
are adopting every strategy for their survival. One of these strategy is by
budgeting the operations. The writer decided to find out wages in which
budgeting affects organization and contribute to the profitability of their
operation and management efficiency, thus the topic.
“Budget Decision in Manufacturing Company” Chapter one brought to
line light the general problems facing the Nigeria economy and the resultant
effect in our manufacturing companies which made obvious the need for adequate
Chapter two received the related literature of budgeting the
concept, historical background, I definitions and its various usage by
different people it equally discussed the entire budgetary procedure from the
propagation stage to the point where master budget is drawn its objectives,
benefits and problems.
Chapter three dealt on collection of data and the method employed
in the data and information analysis and the distribution of questionnaires and
1.1 Statement of problem
1.2 Aims and objective of the study
1.3 Significance of the study
1.4 Scope and limitation of the
1.5 Definition of terms
2.1 Budgeting and overview of the concept
2.2 Historical back ground or origin of budgeting
2.3 Definition and evaluation of budget
2.4 Planning co-ordination and
control as tool
2.5 Various usage of budget
2.6 Objective of budgeting
2.7 Budge manual
2.8 Budget time table
2.9 The budget period
2.10 Types of Budget
2.11 Principal budgeting
2.12 Administration of cost
2.13 Principle budgeting
2.14 Effective budget administration
2.1 Conditions for successful
2.2 Benefit of
2.3 Problems and dangers of
Research Design and Methodology
3.2 Mode of data collection
3.3 Location of
3.4 Restatement of Hypothesis
Organization exists in a complex environment. They therefore
requires growth and forward direction for them to sustain their existence. This
invoices articulation of the objective of the organization which can be budget
the operations of the organization.
A budge specifies the objective it equally provides a system
of monitoring the process of achieving them. Budgeting involves accounting
process and managerial process. The accounting process mainly concerned with
the performance of manger and others in the course of preparing and using
budgets. These tow aspects of budgeting must be integrated to arrive at a
decision. This translated the overall objectives of the organization into
detailed, feasible plans of actions.
Budgeting is a process of qualifying organizations plans of action
in monetary terms to show it’s expected income and expenditure during a certain
period of time it is a feed forwards process which management uses to
stimulated action for effective and efficient operation.
It is aimed at bringing numerous benefits over a range of time
when adequately put into practices. The question is, do organization derive
these benefits as aimed at when budgeting.
1.1 STATEMENT OF PROBLEMS
The state of Nigeria economy (that is the under developed nature
of the economy) is the major problem facing Nigeria in general and organization
in particular. Noticeable are the high depending ratio on imported materials.
The over expenditure on oil and global glub in oil market, and the recently
adopted foreign exchange market (FEM) resulting in a high exchange rate of
naira (N). All these have negative impact
on the economy.
As a corrective means, the federal government directed the
manufacturing sector to back forwards solutions, thus stiffing the
competitiveness in the suppliers. Therefore, organization ought to adopt
effective and efficient method of operations if they are to survive.
The question is how to the manufacturing sector achieve this
desirable fact, particularly in even changing and turbulent political social
economic environment. This must be done through effective and efficient
planning. They must budget their operation. However, budgeting as “a systematic
and formalized approach for accomplishing the planning, co-ordination and
control responsibilities of management”. It was some inherent problems and this
study seeks to identify them.
1.2 AIMS AND OBJECTIVES OF THE STUDY
It is certain that most, if not all manufacturing companies make
use of budgeting in arriving at decision, of which union auto parts, Ibe to
Group, Nnwei, it is not an exemption. The researcher ratend to scrutinize the
budgeting decision of union. Auto parts and compare it with the related
literature to find out.
1) Whether budgeting as a management tool achieve
what it is set to achieve in out manufacturing companies.
2) The creditability of using budgeting as a
management tool a forecast operations.
3) The impact of the under developed nature of the
economy on companies budgeting decision and practices.
1.3 SIGNIFICANCE OF THE STUDY
There exist evidence to show that the nations economy is
depressed. The return on invest is declining daily in our companies causing
reduced interest. In investment of individuals and corporate bodies.
This study is directed towards finding out ways in which budgeting
decision and practice affects our companies and contribute to the profitability
of their operations and management efficiency.
This study will further educate our present and future planner and
implementers on the effects of their responsibilities and bring to time light
the benefit denied by budgeting operations.
In every study of this kind hypothesis often time serve as guide
tot eh researcher. It tend to serve as “assume answer to the principal question
of the study, the correctors of which the assessed in the course of his study”.
The writer will study the following hypothesis.
1) Budgeting decision are functional tools of
manufacturing companies is the topics of this study.
2) Budgeting practice enhance management performance
1.4 DEFINITION OF SOME TERMS
BUDGET APPRAISALS: This
is quantitative valuation of the creditability and profitability of the budget.
BUDGET COMMITTEE: A
formal group comprising of the functional heads. They are responsible for the
determination of budget objective based on the analysis of past and current
general data both externally and internally.
BUDGET REPORT: The
sum total of either monthly or annual statement of budget as supplied by the
functional heads and summarized by the budgeting office.
BUDGETARY IMPLEMENTATION: This
is the actual execution of plans set in the budget.
BUDGET DECISION: A
judgemental conclusion of action to be taken among the available alternative of
BUDGET PRACTICES: This
includes the actual performance or carrying out what has been planned according
to the budget
CAPITALISTIC ECONOMY: Any
economy where individual as well as government has assess to means of
production or are free to acquires and possess the factor of production kind
capital and labour.
CURRENT BUDGET: Budget
prepared for succeeding fiscal year or approval budget in force during the
current fiscal year or assumed that the budget is prepared and adopted before
the beginning of the year which it relates.
DECISION MAKER: These
are people that makes the conclusive judgement of action to be taken
accomplishment of objectives at a minimum cost.
is the process of being able to predict future activities by analyzing the past
and present operations or activities.
FUNCTIONAL MANAGER: These
are the heads of the operational departments.
of actions, statement of aims and ideal especially one made by the authority.
TERMS AND CONDITIONS APPLY
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