ATTENTION:
BEFORE YOU READ THE CHAPTER ONE/ABSTRACT OF THE PROJECT TOPIC
BELOW, PLEASE READ THE INFORMATION BELOW.THANK YOU!
INFORMATION:
YOU CAN GET THE COMPLETE PROJECT OF THE TOPIC BELOW. THE FULL
PROJECT COSTS N5,000 ONLY.
THE FULL INFORMATION ON HOW TO PAY AND GET THE COMPLETE PROJECT
IS AT THE BOTTOM OF THIS PAGE. OR YOU CAN CALL: 08068231953, 08168759420
THE IMPACT OF BUDGETARY
CONTROL ON PROFITABILITY OF AN ORGANIZATION
ABSTRACT
This study examined the impact of budgetary control on
profitability of an organization. Thus, the importance of budgetary cannot be
emphasized in business organization, as management needs to embark on budget to
effect proper planning and control. In this vein, budgeting can be seen as a
process of planning and control. Proper budgeting can never affect efficient
plans of organization without control. Thus, the desire to examine whether
budgetary control is practicable in Samsung Electronics Nigeria Plc ignited
this study. To achieve this objective, four research questions and two research
hypotheses were formulated to guide this study. A well structured questionnaire
was used as the major instrument to gather data from the 70 staff and
management of Samsung Electronics Nigeria Plc and a sample size of 60 were
randomly selected. The data collected from the respondents were analyzed using
simple percentage and Chi-square statistical tool was employ for testing the
hypotheses. The study concluded with some recommendations that the management
of Samsung Electronics Nigeria Plc should make use of budgetary control to
avoid failure in business.
CHAPTER ONE
INTRODUCTION
1.1 BACKGROUND OF
THE STUDY
The process
of preparing and using budget to achieve management objectives is called
“budgeting”. Budgeting is an essential element which is vital to management
accounting technique which can benefit all aspect of business if it is
understood and properly used. The growing complexity of the business
environment and the ever increasing competition among firms in the modern time
makes planning and budgeting inevitable tool for business success (Lucey 2010).
Successful
management is no longer just a matter of flair, skill and determination, a
conscious effort is needed to harness available resources towards the
achievement of enterprise objectives (Pandy, 1985). Therefore budgeting is one
of the tools adopted by management for effective cost planning, control and
increase in productivity.
Wildarsky
(1984:213) argued that because a budget served diverse purposes, it mean
different things to different people, among the various possible
interpretations given by him include; it is a plan, it is a prediction, and it
is a link between financial resource and human behavior to accomplish policy
objectives. Also, it is a mechanism for making choices among alternative expenditure.
Rufus Wizon (2012) observed that without a budget a business
may in order aim lessely. It may never know where it is going or where it
should go. Even with a budget a business may not reach its planned objectives
or destination, but the exercise of budgetary control will note the deviation
from the plan and thus provide the opportunity for necessary corrective action.
The making of such plans and the continuous review and execution are the
essence of budgetary control.
Batty (1982), defined budgetary control as a system which
uses budgets as a means of planning and control-ling all aspects of producing
and or selling commodities or services. This is true as we tend to prepare
revenue and expenditure variance analysis to be able to deduce areas of
divergences for which the management needs to watch to avoid embarrassment as
any adverse variance will translate into inability to meet the corporate
objective which will eventually lead to disagreement with stakeholders.
1.2 STATEMENT OF
THE PROBLEM
What really
instigated the topic impact of budgetary control on the profitability of an
organization was the due to the major setbacks in most organization in terms of
profit maximization as a result of poorly planned budget; poor planning of
budget has led to poor cost control and this has had significant effect on the
profitability of an organization. The ongoing issue has become alarming because
most organization has failed to make use of the available resources such as
funds and raw materials in production process. According to Adams (2001), views
budget as a future plan of action for the whole organization or a sector
thereof. Budgets are plans that deal with future allocations and utilization of
resources to different activities over a given period of time. For any
organization to make progress or achieve its goals, it needs capital and to be
able to make profit, it requires planning of its resources, which can only be
achieved through budgeting; until an organization is able to completely plan an
effective budget, then the profitability of that organization remains
questionable.
1.3 OBJECTIVES OF
THE STUDY
The objective
of the study is based on the statement raised in the preceding paragraph. They
are:
To examine the impact of budgetary control on profitability
in an organization.
To determine whether budgetary control is practicable in
Samsung Electronics Nigeria Plc.
To find the effect of fund management and utilization of
available resource on the level of profitability in Samsung electronics Plc.
To find out whether budgetary control has been implemented in
Samsung Electronics Plc.
To make useful recommendations based on research findings
1.4 RESEARCH
QUESTIONS
The following
research questions are generated to guide this study:
What are the impacts of budgeting control of profitability in
an organization?
Does budgetary control is practicable in Samsung Electronics
Nigeria Plc?
What is the effect of fund management and utilization of
available resource on the level of profitability in Samsung electronics?
Has budgetary control been implemented in Samsung Electronics
Nigeria Plc?
1.5 RESEARCH OF
HYPOTHESES
The following
research hypotheses were formulated to guide this study.
Hypothesis 1
H0: There is no
significant relationship between budgeting control and profitability in an
organization
Hypothesis 2
H0: the management
of funds and utilization of other available resources has significant effect on
the level of profitability in Samsung Electronics Nigeria Plc.
1.6 SIGNIFICANCE OF
THE STUDY
It is the
major way in which the organizational objectives are translated into specific
plans, tasks and objectives related to individual manager and supervisors; it
should provide clear guidelines for current operations.
It is an
important medium of communication for organizational plans and objective and of
the progress towards meeting these objectives.
The
development of budgets helps to achieve, co-ordinate the various departments
and functions of the organization.
Performance
at all levels is systematically reported and monitored thus aiding the control
of current activities.
1.7 SCOPE OF THE
STUDY
This study
centered on the impact of budgeting control on profitability of an organization
with a particular focus on Samsung Electronics Nigeria Plc.
1.8 LIMITATIONS OF
THE STUDY
One of the major problems encountered in the course of this
study was difficulty in obtaining data from the management body of the
organization due to fear of disclosing their management strategies to
competitors. Time constraints were also a problem in the course of this
research work.
1.9 OPERATIONAL
DEFINITION OF TERMS
PLANNING: Planning is defined as the activity where the
managers analyzed the present conditions to determine the way of reaching a
desired future state.
FORECASTING: This is the procedures and techniques for
predicting condition or event that are expected to prevail in the future.
BUDGETING: This is a formulation of plans in a given period
in numerical term.
BUDGET: This is defined as a future plan of action for the
whole organization or a section there of, which is expressed in monetary term.
BUDGETARY CONTROL: This is the establishment of budget,
relating to the responsibility of the executives to the requirement of the
policy and the continuous comparism of actual performance with budgeted level
so as to secure either by individual or collective action the objective of such
policies.
HOW TO GET THE FULL PROJECT WORK
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 (#5,000) into our bank Account
below, send the following information to
08068231953 or 08168759420
(1) Your project topics
(2) Email Address
(3) Payment Name
(4) Teller Number
We will send your material(s) after we receive bank alert
BANK ACCOUNTS
Account Name: AMUTAH DANIEL CHUKWUDI
Account Number: 0046579864
Bank: GTBank.
OR
Account Name: AMUTAH DANIEL CHUKWUDI
Account Number: 2023350498
Bank: UBA.
FOR MORE INFORMATION, CALL:
08068231953 or 08168759420
AFFILIATE LINKS:
myeasyproject.com.ng
easyprojectmaterials.com
easyprojectmaterials.net.ng
easyprojectsmaterials.net.ng
easyprojectsmaterial.net.ng
easyprojectmaterial.net.ng
projectmaterials.com.ng
googleprojectsng.blogspot.com
myprojectsng.blogspot.com.ng
https://projectmaterialsng.blogspot.com.ng/
Comments
Post a Comment