ABSTRACT
This research work is
carried out to determine the impact of budget and budgetary control with
special reference to Morris fertilizer company Minna Niger State. This topic is
chosen because of dearth in the awareness as regards the contribution of budget
and budgetary control in the improvement of the overall performance of an
organization.
However for the purpose
of this work the researcher highlights the purpose an affective budgetary
control could serve an organization.
Types of budgets
preparation of a budge manual as well as the budgeting concepts with emphasis
on the planning programming budgeting system (PPBS) was death with extensively
in the project work by the researcher.
Data were collected from
both primary and secondary sources the analysis of the researcher brought out a
population size that he used to determine the basis for the information
gathered and analyzed.
The use of chi-square (x2)
helped to further the test of the data gathered and interpreted. The findings
of the research observed by the help of the questionnaires interview analysis
and hypothesis testing reveals the findings as contain in this research work.
Based on the result of
the hypothesis empirically tested the researcher concluded that the impact of
budget and budgetary control in Morris fertilizer company Minna is positive and
that effort should be made to educate staff on the need for implementation of
budgetary control system.
The researcher also warn
strictly that for better result to be achieved in government parastatals the
stated recommendation should be adopted.
TABLE OF CONTENTS
CHAPTER ONE
INTRODUCTION
1.1
Over view of the study
1.2
Purpose of the study
1.3
Statements of problem.
1.4
Significance of the study
1.5
Scope and limitations
1.6
Research hypothesis
1.7
Definition of terms
Reference
CHAPTER TWO
LITERATURE REVIEW
2.1
Brief and purpose of budget
2.2
Use and purpose of budget
2.3
Types of budget
2.4
Preparation of budget manual
2.4.1
Characteristic of a good budget system
2.4.2
Other budget concepts
2.5
Limitations of he ppbs
2.51 Zero
base budgeting
2.52 Advantages of
zero base budgeting
2.53
Disadvantage of zero base budget
2.6
Budget process
2.6.1
Budgetary control
2.7
Planning and control process
2.8
Budget and budgetary control in an organization
Reference
CHAPTER THREE
RESEARCH DESIGN AND
METHODOLOGY
3.1
Study area
3.2
Sources of data
3.3
Method of investigation
3.4
Sampling procedure
3.5
Administration of questionnaire
3.6
Description of data analysis technique
Reference
CHAPTER FOUR
Date presentation and
analysis
4.1
Presentation analysis and interpretation
Reference
CHAPTER FIVE
Summary of finding
conclusion & recommendation
5.1
Summary
5.2
Conclusion
5.3
Recommendation
5.4
Reference
5.5
Bibliography
Appendix
CHAPTER ONE
INTRODUCTION
1.1
OVERVIEW OF THE STUDY
Budgeting is essentially
concerned with planning and its implementation of expected income and
expenditure for a special period of time.
There is need for good
planning of the budget in every organization because any organization that does
not plan and implement its budget is expected to encounter a lot of problems.
These problem range from mismanagement of limited research to reckless management
habit of not adhering to budgetary control measure.
Budget and budgetary
control are two accounting techniques which top management adopt to achieve it
task of planning co-ordinating directing and control in an organization.
Planning is mainly concerned with the future and selection of policies,
strategies, tactics and action required to achieve these objectives.
Planning was previously
based on historical cost conventions. This process increased the emergency
decision which top management had to make because historical cost conventions
are aid future oriented they do no aid planning.
In order to reduce to
management’s emergency decision making process and this and planning variable
budgets were introduced. This is so because managers want to know more than
they have done currently in relation to cost period performance they also wants
to know how they have done currently in relation to their current targeted
performance.
Control on the other
hand follows closely after action has taken. It is a process where by actual
performance is compared with targeted/ budgeted performance any deviation from
his target are investigated for an in depth or positive explanation given.
Budgetary control is the
techniques used for this purpose and when it is combined with budget it becomes
part of reasonability accounting. This aim of budgetary control is to provide a
formal basis for monitoring the progress of the organization as a whole and of
its component part towards that achievement of the objective specified in the
planning budgets.
Budget enjoy a wide
application they can be used in our private houses where a civil servant who
earns a monthly income will map out his objectives and plans effectively with
what he has to achieve those objectives.
BACKGROUND INFORMATION
OF MORRIS FERTILIZER COMPANY
The research work on the
impact of budget and budgetary control on the performance of Morris fertilizer
company would not be complete without background information of the
organization.
ORGANIZATION STRUCTURE OF MORRIS
FERTILIZER COMPANY
1.2 PURPOSE
OF THE STUDY
The purpose of the study
is to find out the impact of budgets and budgetary control on the performance
of Morris Fertilizer Company a government-established organization in Minna
Nigeria State.
Special component of
planning and control process will be empirically tested to determine whether
the impact is positive or negative.
This study will slow how
budgeting helps organization towards the right step in achieving desired goals
and also how it will tackle the problems that will be highlighted below. This
study has the following objective.
1)
To ascertain the role played by budgets in the over all performance of the
organization under study.
2)
To ascertain to what extents budgets are implemented for achievement of result
in Morris fertilizer company.
3)
To identify how budgets can be used to control expenditure on the hand and
assist revenue generation on the other hand.
4)
To identify problem encountered in budget preparation and implementation
5)
To issue recommendation for improvement
From the organization
above it can be seen that Morris fertilizer company is been headed by the
general manager besides the general manger there are five directors
assigned to different responsibilities in the organization. We have director
investment and loans who is responsible for all inventible
undertaken by the organization and he also takes charge
of leave and other investment responsibilities. Director personnel manageemnt
handles all aspect of firm employment of firm employment of staff the director
finance and supplies is responsible of making sure that funds are always
available to meet the companies daily responsibilities. The director
administration is responsible for daily managerial administration of the
corporation and staffing of all its workers.
1.3 STATEMENT
OF PROBLEM
Budgeting is the
formulation of plans both long and short range for future activities that seeks
to substitute carefully studies action of how to attain the desired goads and
provide measure through which deviation from planned achievement can be
evaluated. The process of budgeting lead to budget which the institute of cost
and management accountant defined it as a financial and quantitative statement
prepared and approved period of time of the policy to be pursued during the
period for the purpose of attaining a given objective. It may include income
expenditure and the employment of capital
Since the sole purpose
of organization is profit maximization a properly concerned budget may or may
not lead to a goals because of problems involved in budgeting and budgetary
control the variation between the actual performance and the budget result
could be checked and corrective measure taken immediately. This leads to the
need to control the budget.
The institute of cost
and manageemnt accountant defined budgets relating the responsibilities of
executive to the requirement of a policy and continuous comparison of actual
with budgeted result either to secure by individual action. The objectives of
that policy is to provide a firm basis for it revision
1.4 SIGNIFICANCE
OF THE STUDY
The significance of
choosing the impact of budgeting and budgetary control is in order to show how
the designed goals of the organization could be attained through the use of
budgetary system
Budgeting perform he
broad function of planning co-ordination communication motivation and
control. These functions if properly defined and followed
will lead to the success of a business. The success of having a properly
budgeted figure and the resultant good profit to some extent on which prepares
the budget. Since budget can be looked at a way leading to the destination if
follows that the person making the journey cannot reach its destination unless
the way is properly patched and followed. Therefore the responsibility of
preparing a budget should be left in the hands of highly qualified and
experienced personnel who are charged with the stewardship of the organization.
Planning as budget
function arises when the executive meet to decide on the goals on the
organization periodically. There must be an evaluation the progress that has
been made re-evaluation of the objective if changing condition indicates the
need for revision. The establishment of budget brings along the definition of
the specific functions to be performance by various executive in their
respective divisions.
The contents of a master
budget would have to be divided into various departmental budgets, which give
details of what each department is expected to perform and in order to achieve
the group objective. These goals will not come automatically steps must be
taken to ensure that the goals set by top management are understood and
acceptable to subordinates
Communication plays a
very important role in the business operations. It is often said that the first
executive functions is to develop a very effective system of communication. The
activity of each subordinate must be communicated to him and any deviation from
the set objective being reported for corrective action to be taken.
If the above budget
functions are not left to highly qualified and competent persons then
inaccurate and inefficient system of budgetary control would emerge and the
result would be unfavorable to the set objective of the corporation
A carefully designed
budget gives a sense of direction to an organization. if solution to this
problems re properly followed will lead business to success and to the benefit
of Morria fertilizers company Minna Niger
State
1.5 HYPOTHESIS
FORMULATION
In an attempt to examine
the problems of budgeting and budgetary control the following hypothesis can be
considered.
H0:
The work of budgeting department has not made significant impact on
the performance of the
organization.
Hi:
The work of budgeting department has made significant impact on
the performance of the
organization.
H0:
Budgeting department do not need more qualified personnel to perform
its functions
effectively.
Hi:
Budgeting department need more qualified personnel to perform
its functions
effectively.
H0:
Budgeting can not be used in improving the performance of government
establishments.
Hi:
Budgeting can be used in improving the performance of government
establishments.
H0:
There is no continuous comparison between actual and expected budget
in the
organization.
Hi:
There is continuous comparison between actual and expected budget
in the
organization.
1.6 DEFINITION
OF TERMS
-
Fertilizer
- Artificial manure
for replenishing soil nutrient soil
-
Agriculture
- A science and
practice of tilling lead and rearing of
animal for human consumption
-
Consumption -
The process of utilizing the product realized from
agriculture activities or use
up
-
Exporting
- It involved
selling locally made products to other
countries in order to earn foreign
exchange
-
Grounded
- To be faulty
-
Exodus
- Movement away of
masses
-
Established
- Set up of order
of sequences
-
Chemical
- Substance mostly
used in laboratory especially
chemistry laboratory e.g. poisonous gas etc.
-
NEIC
-
A type of a company fertilizer which contains three
different elements such as nitrogen
potassium and phosphate
-
Boosting
- Increase the
value
-
Imported
- Goods or raw
materials brought from other countries
into this country
-
Complex
- Difficult to
understand
-
Facility
- Equipment that
facilitate production or training of
personnel
-
Tonne
- Metre for
measurement
-
Budgeting
- Estimate for
probable future increase expenditure
-
Budgetary
- Act of budget
-
Deviation
- Turning away or
against the formal process
-
Variation
- Change in bodily
structure or form
-
Restricted
- Keep within
limit.
Department | Business Administration and Management |
Project ID Code | BAM0134 |
Chapters | 5 Chapters |
No of Pages | 84 pages |
Methodology | Chi Square |
Reference | YES |
Format | Microsoft Word |
Price | ₦4000, $15 |
|
|
Contact Us On | +2347043069458 |