AN EVALUATION OF BUDGETING AS A TOOL FOR PLANNING AND CONTROLLING PRODUCTION ACTIVITIES IN NIGERIA MANUFACTURING INDUSTRY (A CASE STUDY OF DOYIN GROUP OF COMPANIES)
TABLE OF CONTENT
TITLE PAGE PAGES
LIST OF TABLE IV
1.1 BACKGROUND OF THE STUDY 1
1.2 STATEMENT OF THE PROBLEM 2
1.3 OBJECTIVES OF THE PROBLEM 3
1.4 SIGNIFICANE OF THE STUDY 3
1.5 SCOPE AND LIMITATION OF STUDY 4
1.6 ORGANIZATION PLAN 5
1.7 DEFINITION OF TERMS 6
REVIEW OF RELATED LITERATURE
2.1 MEANING OF BUDGET 7
2.2 ROLES OF BUDGET 8
2.3 BUDGETARY PLANNING AND CONTROL 11
2.4 TYPE OF BUDGET/EFFECT OF BUDGET 16
2.5 OBJECTIVES OF BUDGETING CONTROL 18
2.6 APPRAISAL OF LITERATURE REVIEWED 19
3.1 RESEARCH DESIGN 21
3.2 POPULATION OF STUDY 21
3.3 SMAPLE AND SAMPLING TECHNIQUES 22
3.4 RESEARCH QUESTION 22
3.5 INSTRUMENTATION 23
3.6 SOURCES OF DATA 23
3.7 METHOD OF DATA COLLECTION 24
3.8 METHOD OF DATA ANALYSI 25
3.9 LIMITATION OF THE METHODOLGY 25
PRESENTATION, ANALYSIS AND INTERPRETATION OF DATA.
4.1 INTRODUCTION 27
4.2 THE MAJOR PURPOSE OF PREPARING A BUDGET 27
4.3 ESSENTIALS OF BUDGETING 28
4.4 BASIC ELEMENTS OF BUDGETS THE BENEFITS OF BUDGETING 30
4.5 THE BENEFIT OF BUDGET 32
4.6 DATA PRESENTATION 32
4.7 RESEARCH QUESTION 33
4.8 CATEGORY OF BUDGET IN A TYPICAL MANUFACTURING ORGANIZATION 36
SUMMARY, CONCLUSION, AND RECOMMENDATIONS
5.1 SUMMARY OF FINDING 38
5.2 CONCLUSION 40
5.3 RECOMMENDATION 41
1.1 BACKGROUND OF THE STUDY
One of the functions of a managers is to ensure that the necessary are information are acquired and employed in an effective and efficient manner for the accomplishment of the organization objective. This can be achieved by strategic planning. The strategic programme is otherwise know as budget.
A budget is a plan of expenditure in qualitative and usually monetary. For a specified period of time. It helps project in top the future where business wants to be in future and how it intend to get these. If business management attempt of budge for the future. They one fared to thing about tomorrows problems and opportunity.
Budgetary process involves making plans, executing those plans and monetary activities to in line with the plan. The process is interrelated with controlling and planning. Some managers fail to acknowledge the practicability and importance of budgets and budgetary control bsuch managers claims that the uncertainties poculliar to their business make budget impracticable to them. Also, many people associate budget with negative control activities where as the full process is musch broader and more positive them that.
As earlier said budget is concerned with making executing plans and monetary or controlling aspect is called budgetary control. It includes making some people (managers) responsible for a plan to be effective, it has to be motivated, directed, coordinated and control through the personnel instrument of top management.
1.2 STATEMENT OF PROBLEMS
The research work seeks to examine the following; problems
1. What is the meaning of budget?
2. To what extent has budget contributed to effecives planning and control in Doyin Group of companies.
3. what is the role of budget committee in effective budgeting.
1.3 OBJECTIVE OF THE STUDY
1. The purpose of the study to examines critically the budget as an instrument for planning and control in Doyin Group of Companies, Ilorin Branch.
2. To find out what extent has budget contributed to effective planning and in Doyin group of Companies, ilorin branch
3. To explain the role of budget committee in effective in budget getting Doyin Group of companies, Ilorin branch
4. To find the components of budget as an instrument for planning and control, its importance, the different types of budget, most especially in Doyin Group of Companies, ilorin branch.
1.4 SIGNIFICANCE OF THE STUDY
The aim of establishing any business organization is to maximize profit. This can not be achieved without planning the planning is what is being known as budget in other words, for a business organization to be efficient and getting larger it needs to get budget and work towards the plan for the achievement of the organization goals and objective
Budget is very important because of the following reasons stated below:
1. It aids the planning of annual operations
2. It provides model of correction in the event that did not meet the budget determination.
3. It indicates the organization needs for future financing
4. establishes the financial position of the organization.
5. It provides a financial plan for the action in addition it helps the organization value which reason for the difference and taken a corrective measures as this organization which the profit of the organization and objectives without going astray from the set plans.
6. It controls activities and motivates managers to shrive in order to achieve the organization goals
1.5 SCOPE AND LIMITATION OF STUDY
This project work focus attention on the budget as instrument for planning and control. The effect in employers behaviour its preparation, control and the functioning budget, master budget and so on. In a manufacturing company, emphasis is placed on the Doyin Group of Companies, Ilorin branch together necessary information. The researches did not go Doyin group of Companies, due to time and financial constraints.
1.6 LORGANIZATION PLAN
This study is strutted into five chapters, chapter one complains the background to the study statement of problems, the objectives scope and limitation, the significance of the study and lastly, the basic terms and concepts. Chapter two contains the definition of budget, roles of budget, review of the related literature, budgetary planning and control types of budget, effect of budget, and objectives of budgetary control.
Chapter three entails the hihstorical background of he case study of Doyin group companies ilorin Branch, the objectives of doyin Group of companies, sources of information.
Chapter four deals with the data collection limitation of data collection, planning and forecasting and budgetary control
Chapter five contains the summary of findings of the conclusion and recommendation.
1.7 DEFINITION OF TERMS
⦁ BUDGET: This can be said to be yearly statement the exchanges of the state of the nation finance i.e to estimates financial and expenses
⦁ MANAGEMENT : This is a group of individuals who give authority, career and process in order to attain.
⦁ ALLOCATION : It is simply the giving of shame as a money, places or space.
⦁ REVENUE : It is also known as income for the total annual of the state government department, which collects to produce or generate profit or wealth it could be money for public funds.
⦁ CAPITAL : This is the amount put into an investment to produce or generate profit or wealth it could be money.
⦁ EXPENDITURE : This is the amount that is being spent within a particular year, these are some terms being used and their definitions..