This document provides an introduction and table of contents for a study evaluating budgeting and budgetary control at Benue Brewery Limited in Makurdi, Nigeria. The introduction discusses the importance of budgeting for planning, control, and performance in businesses and households. It notes that while budgets are crucial tools, many organizations fail to take full advantage of budgeting. The study will examine how effective Benue Brewery's budgeting and budgetary control processes are and their impact on the company's performance.
Original Description:
budget
Original Title
An Evaluation of Budgeting and Budgetary Control in Brewery Industry
This document provides an introduction and table of contents for a study evaluating budgeting and budgetary control at Benue Brewery Limited in Makurdi, Nigeria. The introduction discusses the importance of budgeting for planning, control, and performance in businesses and households. It notes that while budgets are crucial tools, many organizations fail to take full advantage of budgeting. The study will examine how effective Benue Brewery's budgeting and budgetary control processes are and their impact on the company's performance.
This document provides an introduction and table of contents for a study evaluating budgeting and budgetary control at Benue Brewery Limited in Makurdi, Nigeria. The introduction discusses the importance of budgeting for planning, control, and performance in businesses and households. It notes that while budgets are crucial tools, many organizations fail to take full advantage of budgeting. The study will examine how effective Benue Brewery's budgeting and budgetary control processes are and their impact on the company's performance.
3.2 Research Design - - - - - - - 31 3.2.1 Population of the study - - - - - - - 31 3.2.2 Sample of the study - - - - - - - 32 3.2.3 Nature and Sources of Data - - - - - - 32 3.2.4 Techniques of Data Processing Analysis - - - - 34 3.2.5 Instruments and Procedure of data Collection - - - 33 3.2.6 Description of Variables Employed - - - - - 33 3.2.7 Problems and Limitations of Data Collection and Design - - 35 CHAPTER FOUR: DATA PRESENTATION, PROCESSING ANALYSIS AND FINDINGS 4.1 Introduction - - - - - - - - - 36 4.2 Data Presentation and Analysis - - - - - - 36 4.3 Test of Research Hypothesis - - - - - - 39 4.4 Evaluation of Data and Research Findings - - - - 37 CHAPTER FIVE: SUMMARY, CONCLUSION, AND RECOMMENDATION 5.1 Chapter Summaries - - - - - - - 44 5
5.2 Conclusions - - - - - - - - - 46 5.3 Limitation of Study - - - - - - - - 47 5.4 Recommendations of Study - - - - - - 48 5.5 Suggestions for Further Research - - - - - 50 Reference - - - - - - - - - 51 Appendix - - - - - - - - - 53
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ABTSRACT Budget and budgetary control, both at management and operational level looks at the future and lays down what has to be achieved. Control checks whether or not the plans are realized, and puts into effect corrective measures where deviation or shortfall is occurring. This study examines how budget and budgetary control can impact on the performance of the BBL, as considered in this study. We reviewed the performance of BBL in previous and recent times. We found out that the performance of this industry depends much on the budgetary system in achieving its objectives. An empirical investigation was undertaken, using the simple correlation analysis techniques specifically the Pearson Product Movement Correlation. In most of the cases considered established the presences of strong relationship between turn over as a variable of budget and performance indicators-EPS, DPS, and NAS, of BBL. Following our findings, we advise managers and business operators to pay more attention to their budgetary control system, for those without an existing budgetary control system, they should put one in place, and those with a dummy or passive budgetary control system, It is time they re- establish a result- oriented budgetary control system as it goes a long way in repositioning the manufacturing industry from its creeping performance level to an improved high capacity utilization point.
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CHAPTER ONE INTRODUCTION 1.1 Background to the Study There is hardly any aspect of human Endeavour that does not have economic implication because economics as a science is essentially concerned with the study of scarce resources, there allocation, management and utilization. This reality is what gave birth to a business budget in the 20 th century. The term budget was first put to use in Europe to refer to first, a leather bag used to carry statement of revenue and expenditure, and later the term was referred to as the statement itself and not just the container. Today, a budget play a greater role in the planning and control process of basically all organization, be it private or public sector, ministries and non profit-making organizations. Organizations developed plans on how to go about its future operations. While control measures are used to correct any deviation from the plans. The budgetary process is an integral part of both planning and control. Budgeting is making plans for the future, implementing those plans and monitoring activities to see whether they conform to plans. To 8
do this successfully, it requires maximum commitment by the top management, corporative and motivated middle management and staff, and well organized reporting system. The importance of budget to households, business organization can never be over emphasized. Most families or members of households have at point developed a budget to guide them in allocating resources over a specific period of time. The family budget is a planning tool, but it also serve as control behaviour of family members by setting limits on what can be spent within each budget category. Budget enables house to know how much of their money is being spent. Such a situation can easily lead family into unexpected debt and severe financial difficulties. Likewise, budgets play a similar planning and control role for managers within business units and budgets are a central part of a design and operation of management accounting system. As in household budget, budget in business organizations reflects in quantitative term, how to allocate financial and other resources to each organizational subunit, based on its planned activity objective. Budgeting activity to organizational unit can reflect how well unit managers understand the organizational and provides an opportunity for the organizations top planners to correct misperceptions about the organizations goal. 9
Budgeting also aims at coordinating the organizations many activities. For example, budget show the effect of sales level or volume on purchasing, production, administrative activities etc. In reality, budgeting is the most widely used accounting tool for planning and controlling the activities of organizations. Budgeting system helps managers to forecast. By looking into the future and planning managers are able to anticipate and correct potential problems before they arise. Managers can then focus on exploiting opportunities instead of fighting fires as one observer said few businesses plan to fail, but many of those that flop fail to plan (Horngren, et al, 2002; 178). The research is deeply concerned with the extent to which management of Brewery companies seize the advantages associated with budgeting process. The researcher is interested in finding out if managers of Brewery companies effectively and efficiently design and implement realistic budgets. Do they use budgets as a potent tool for resource allocation and control? The choice of Benue Brewery Limited as a case study for this research work is informed by the industrys relatively long-life span of production. Secondly, the relative low level of production at the industry has also prompted the researcher to investigate its budgetary system. 10
1.2 Statement of The Problem Budgeting and budgetary control is one of the essential functions of every business organization. Survival and growth of any corporate organization depends on effective budgetary control measures. This implies that if budgets are effectively designed and implemented, an organization can achieve massive results. On the other hand, in Nigeria today, there are incidences of corporate failure in most organizations. It appears managers are not taking advantage of the budgetary process to the success of business organizations. The behavioral or human aspect of budgeting is equally worrisome; how do peoples attitudes affect the budgets, and in turn, how do budget affect peoples behaviour? The questions intrigued social scientist to engage in extensive study about the human factors involved in budgeting. Moreover, the research is aimed at knowing if budgeting and budgetary control is playing a significant role in achieving the objective of organizations, to investigate the problems associated with the designing and implementation of budgets in organization, to find out whether poor performance in some organizations is attributed to poor implementation and finally, to investigate the human aspect of budgeting. 11
1.3 Significance of the Study The study will be significant in various ways to various parties, as will be seen below; It will present in a precise manner, the importance of the role of budgeting and budgetary control in achieving organizational goals. To managers and potential managers, the findings of the research, suggestion and recommendations based on the findings will be a good guide for future management of resources using budgeting and budgetary control. The outcome of the study will help widen their horizons on resource allocation and control. Operating staffs will also be informed on how they can improve their operation through the use of budgets as guides. The research report will also serve as a reference material to students of accounting, especially those with a bias in management accounting. The research will also provide ample information to external auditors on how resources of companies are allocated and managed. This will certainly enhance their audit planning. Finally, this study is intended to unveil those factors that are responsible for poor budget implementation frequently leading to their failures while also highlighting the control mechanisms required for a successful budget implementation.
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1.4 Objectives of the Study The objective of this research work includes the following: i. To ascertain the role of budgeting and budgetary control in achieving the objectives of Brewery industries. ii. To investigate the relationship that exists between the designing and implementation of budgets in Brewery industries. iii. To find out the relationship between poor performance and poor implementation of budgets in brewery industry. 1.5 Research Question 1. What is the relationship between budgetary control and the achievement of companies performance 2. Is there any relationship between the designing and implementation of budgets in companies? 3. What is the relationship between poor performances and poor implementation of budgets?
1.6 Research Hypothesis
Ho 1 : There is no relationship between budgetary control and the Achievement of companys objectives 13
Hu 1 : There is relationship between budgetary control and the achievement Of companies objective Ho 2 : There is no relationship between the design and the implementation of Budgets in companies performance Hu 2 : there is relationship between the design and the implementation of budgets In companies performance Ho 3 : There is no relationship between poor performance and poor Implementation of budget Hu 3 : There is relationship between poor performance and poor implementation of budget.
1.7 Scope of the Study The research is intended to cover budgetary activities as they affect the realization of goals and objectives of Brewery industries. However, due to the diverse nature of Brewery industries with varying objectives 14
and the time frame required for the report of the research , the research has been scaled down to a case study of Benue Brewery Limited (BBL), Makurdi. The period under investigation is from 2009-2012
1.8 Structure of the Study This research work is divided into five (5) chapters with chapter one as the introductory chapter which is divided into nine (9) sections including background to the study, statement of problem, objective of the study, the research questions, research hypotheses, significance of the study, scope of the study, the structure of the study and the definition of terms. Chapter two is the literature review which includes the conceptual framework of budgeting and budgetary control, review of prior studies, chapter summary and a brief historical background of the case study which is Benue Brewery Limited (BBL). Chapter three (3) is the research methodology made up of the introduction, research design, population and sample size, nature and sources of data, instrument and procedure for data collection, description of variables employed, techniques of data processing and analysis, 15
problem and limitation of data collection and design and chapter summary. Chapter four is the data analysis and result which is made up of introduction, data presentation and analysis, test of research hypotheses, evaluation of data and research findings. Finally, chapter five (5) is the summary, conclusions, recommendations which is made up of summary of findings, generalization of findings, limitation of study, conclusions, recommendations of study and lastly the suggestions for further research. PLEASE, print the following instructions and information if you will like to order/buy our complete written material(s). HOW TO RECEIVE PROJECT MATERIAL(S) After paying the appropriate amount (#2500) into our bank Account below, send the following information to 08064034407,08070584596 (1) Your project topics (2) Email Address (3) Payment Name (4) Teller Number We will send your material(s) immediately we receive bank alert BANK ACCOUNTS MAIN BANK ACCOUNT Account Name: ONOWA SIMON O. Account Number: 0016183848 Bank: ECO Bank. HOW TO IDENTIFY SCAM/FRAUD 16
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