TABLE OF CONTENT
Title
page i
Approval
page
ii
Dedication iii
Acknowledgement iv
CHAPTER ONE
1.0 Introduction 1-4
1.1 Statement of research problem 4-5
1.2 Aims and objective of the study 5-6
1.3 Statement of Hypothesis 6
1.4 Significance of the study 6
1.5 Scope of the study 7
1.6 Organization of the study 7-8
CHAPTER TWO
2.0 Literature Review 9-10
2.1 Meaning of budget 10-11
2.2 Budget as a planning tool 11
2.3 Budget as an instrument for motivation 12
2.4 Budget as an instrument for coordination 12
2.5 Budget as an instrument for communication 13
2.6 Budget as a tool for evaluation 13
2.7 Budgetary planning and control 14-16
2.8 Type of Budget 16
2.9 Sale Budget 16-17
2.10 Productions
cost Budget 17
2.11 Capital expenditure Budget 18
2.12
Cash Budget 18
2.13 Objective of budgetary control 19-20
2.14 References
CHAPTER THREE
3.0 Historical background of the study 21-24
3.2 population of the study 24
3.3 Sample size 25
3.4 Measure of variable 25-26
3.5 Planning and control 26
3.6 Statistical tool for debt analysis
3.7 Limitation of the study 26
CHAPTER FOUR
4.0 Data presentation 27
4.1 Data Analysis 27
4.2 Descriptive Statistics 28
4.3 Inferential Statistics 28-33
4.4 Interpretation of the result 33-37
4.5 Discussion for the finding 37
CHAPTER FIVE
5.0 Summary 38-39
5.1 Conclusion 39-42
5.2 Recommendation 42-44
bibliograehy 45
Questionnaire 46
CHAPTER ONE
1.0
INTRODUCTION
Budget is an estimate of probable future income
and expenditure, it is mechanism for deciding what will be spent and realized
in future. Budget is the expression of management master operating of financing
plan that is the formalized outline of company objectives and means of
attaining them.
It can be said that budget are formal statement of
organization resource set aside for the purpose of carrying out specific
function or activities over a given time period. Budgets are useful and form an
important part of the planning and controlling process.
Budget also indicates the expenditure revenue and
profit planning for a given future time span.
Budgets are usually stated in monetary term, this
providing a common ground for a variety of organization activities.
Management can use budget to provide a major area
of control and planning.
Budget as various authors describe it. B. B. Howard and M. Upton in their book define
budget as “the formal presentation of the process of planning for future
financial requirement to achieve solvency and profitability”.
Also B. Murphy in his book defines budget as plan
which is prepared to show how resources will be required and used over a period
of time.
A well structural budget must necessarily lead to
improve control of a firm. This is possible because the supervisor would have
now had on indication of what would be done; also the supervisor with the
accountants’ help can be more easily sport that is being ineffectively done. A
good technique of control with a budget helps the manager to take decision on
the most intricate problem.
The control process according to John Storey “
Uses arrange of devices, operating activities or procedure and organization
structuring in order to assist manager in implementing their organization
budget, the purpose of control is to ensure that performation optimized defined
organization budget financial budgets represents the firm’s plan for the coming
year. Summarized in projected financial statement since budgets are plans, they
become the critical by which managerial performance is measured and therefore,
the basic for the control system; where as budget have a double role which is
plan and performance.
Generally, they are viewed as synonymous with
control and not with planning
; Moreover, it is their use as control devices
that have made budgets. The focus of much criticism by some school of thought
which view them as a coercive tool used by top management to enforce its
objectives on the participants of the organization.
According to John Storey, the challenge to
management control, 1980 USA page 56. It is obvious that organization operate
in a world of uncertainty in which the ability to anticipate and budgeting.
Organizations are adapted to their dynamic environment.
It is therefore, the manager lot to participate, manage and forecast their
environment plans if they are to be effective, they should display certain
characteristics.
They should be flexible enough to allow for
changing condition and provide a basis for coordinated behavior. Every planner
must always recognize that the future is uncertain and that budget is an
important tool for aiding, to a reasonable degree plan and cents forward the
achievement of the organization objective.
1.1 STATEMENT OF THE PROBLEM
The
purpose of this research work is basically on how the hotels especially Kwara
Hotel Ltd. Ilorin has been able to discharge its social responsibility to its
environment and staffs at large and how his social responsibility has affected
the neighboring in terms of good health, creation of scholarship to youth, to
mention but a few.
All
these tend to raise the return has positive impact on the profitability of the
Hotel. This research work is meant to see how budge serves as a tool for
effective planning and control so as to maximize its profit.
1.2 AIMS AND OBJECTIVES OF THE STUDY
The
following are the aims and objectives of the research work.
1. To help organization in budgeting, so that they
can know that budget can be part of planning and also a measure for effective
control in the organization.
2. To review the role of financial budget in a
cooperative planning and control process by re-examine the relationship between
the controller and the controlled.
3. To look at the way budgeting is made as a tool for
effective planning and control in kwara hotel limited, Ilorin
4. The write-up is not only to aid the Hotel but also
may help other organization to know that budgeting can be used as a means of
effective planning and control.
1.3 TEST OF HYPOTHESIS
H0: Budget is an effective tool for planning and
control.
H1: Budget is not an effective tool for planning
and control.
1.4 SIGNIFICANCE OF THE STUDY
A
fundamental importance of the study is to find the most profitable course
through which the effort of the organization may be directed in meeting its
primary objectives.
This
study will assist the management in holding the business as nearly as possible
on its chartered course.
Since
the organization operates in a dynamic environment, this study will help the
managers to participate manage and forecast enable environment which will form
the basis upon which are made.
1.5 SCOPE OF THE STUDY
This
study will cover all the budgetary control in Kwara Hotel Limited Ilorin. It
will also review the budget of various departments in reaching conclusion of
its research study.
This
write-up will also look at the formulating of the organization budget and
emphasize budget as a management used for effective planning and control.
1.6 ORGANIZATION OF THE STUDY
It
has already been stated that the purpose of this study is to use budget as a
measure for effective planning and control so that organization can achieve.
There will be a brief of introduction of the topic in chapter one stating
definitions and use of budget for effective planning and control.
This
will be followed by a discussion on a conceptual frame of budgeting
highlighting some of the popular theories, which will be second chapter.
The
third chapter will include the historical background of the Hotel and its organization
set up.
Data
presentation and analysis about the study will be included in chapter Four.
Chapter
five will state the summary, recommendation and conclusion.
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