work was focused on investigation on the use of budgeting as a tool for
planning and control in topical manufacturing industry like Nigerian breweries
of the study is to show the important of budgeting as a tool for planning and
control in operation of a manufacture industry which has profit maximization as
its principal objective. The research also aims at identifying the procedures
adopted in the formulation of annual budgets of Nigerian Breweries plc.
Based on this,
the following hypothesis was formulated for the study. The hypothesis include:
(1) Managers use budgeting as a tool for planning and
control in attaining the goals of the business.
(2) Decision-making is performed in a manufacturing
industry using budgeting.
(3) Utilization of resource is achieved with the use of
budgeting and budgetary control
Following the investigation and
analysasion of the data, the following finding were made:
(1) The organization uses budgeting in achieving their
goals and objectives.
(2) The main objective of the organization is maximization
(3) Efficiency and effectiveness of the organizations
operation is enhanced through the use of budgeting etc.
From the finding, the conclusion were arrived that
budgeting is a very essential and indispensable tool for planning and control.
It helps management to be well
structure in sustaining the growth and expansion of the organization
TABLE OF CONTENTS
of the problem
1.2 Purpose Of The Study
1.5 Scope and
limitation of the study
of the study
CHAPTER TWO: REVIEW OF RELATED LITERATION
Definition of budget
and functions of budget
Preparation of budget
and methods of budget
problems associated with budget
planning function in an organization
function in an organization
Budgetary control and analysis of variance
CHAPTER THREE: RESEACH METHODOLOGY
sampling and sample size
of data analysis
of data collection.
PRESENTATION, ANALYSIS AND
INTERPRESENTATION OF DATA
Analysis of data
SUMMARY OF FINDINGS,
CONCLUSING AND RECOMMENDATION.
Business organizations need planning to
achieve their aims and objective. It thorough planning in an organization
cannot be done without involving the act of budgeting. The management has the
purpose of providing a feed – foreword process.
of feed-forward process in to provide each manager with guideline for making
operation decision on a day –to- day basic. Budgeting deals with plans and
monitoring activities to ascertain whether they conform to the plans. This is
the control and coordination aspect of budgeting.
Manufacturing industries can only achieve
profit maximization by proper planned use of available resource. This is
sustained when different activities are efficiently coordinated, and decisions
taken in the organization are result oriented. Business organization requires
the use of some techniques in the formula and adoption of planned and defined
system and tools with a view to achiever set goals. Such tools and systems
include budgetary variance analysis and budgetary control. The process of
setting goals to be achieve in the future time and determining how these goals
are to be reached is described as PLANING, while the process of translating
this planning into financial target can be described as BUDGETING.
Reg, H. Garrison, in his opinion, defined
budget, thus, a budget is a detailed plan showing how resources will be require
and used over some specify time interval. It repented a plan for the future
expressed in a formal qualitative terms. The act of preperating a budget is
called budgeting. The use of budget to control a firms activities is known as
budgeting control ‘’.
This project is organized in five chapters,
which aimed at finding out the budget process used achieving the goals of a
typical. Manufacturing, industry with profit maximization as its main objective
with center focuses in Nigerian breweries plc Enugu.
is an introduction to the study concerning such issues as:
Statement of problem
Purpose of the
Scope and limitation of the study
Significant of the study
Definition of terms
present the literature review, which such issues as:
(2) Feature and
function of budget
(4) Types and
methods of budget
associated with budget
function in an organization
function in an origination
control and analysis of variance.
three presents the reseach design methodology.
The source of data collected for analysis,
and treatment of some of the problems encountered during data collected were
examined and analysis in detail to enable us draw conclusion there by making
five contains the summary of the resaech, recommendation and conclusion.
STATEMENT OF THE PROBLEM
The management has his primary duty of
achieving the objective of profit maximization of the company through budgeting
.due to the state of our economy, and government policies, this goal is much
hindered during the period of economic depression which features low capacity
utilization, high interest rate shortage of foreign exchange to buy the needed,
raw material. Management is filed with the problem of how to make use of
available scarce resources your order to achieve the objective of profile
maximization. This reseach work is
intended to help in dertermingand highlighting the problems that militate
against the application and utilization of budgeting as a tool for planning and
control in a manufacturing industry The research work will provide solution of
the following problems.
Inability of the manufacting company objectives (2)
Insufficient appraisal of the company performance base on budgeting.
of officers in the cost centers to conform to guild line and attain the
standard set in the organization. This is applicable to all workers
Inadequate monitory of compliance with and deviation from department and entire
PURPOSE OF THE STUDY
The purpose of this study includes the
To show the importance of in getting as a tool for
planning and controlling in the operation s of a manufacturing industry which
has the maximization of profit ads its principal objectives
To identify the procedures adopted in the formulation
and implementation of animal budget in Nigerian Breweries plc Enugu
To determine whether there is a correlation between
the type of budget implemented and their actually performance.
The study will determine whether or not budgeting
control as a management tool contributes to the improvement of managerial
efficiency and high productivity.
(1) How does
managers use budgeting in planning and control in author the goals of a
(2) How does
decision making performed in a manufacturing industry using budgeting as a tool
for planning and control?
(3) How has
utilization of resources achieved with the use of budgeting and budgetary
STATEMENT OF HYPOTHESIS
The following are the basic
for reseach in this study:
Managers are using budgeting in planning and controlling the the business
are not using budging in planning and controlling the business resource.
budgeting is a tool for effective decision making in manufacturing industry.
utilizations of resource is achieved with the use of budgeting and budgetary
utilization of resource is not achieved e with the use of budgeting and
SCOPES AND LIMITATION OF THE STUDY
The study of budgeting as a tool for
planning and control in a manufacturing industry has its scope limited to
Nigerian Breweries (NBL) PLC Enugu due to various constraints.
Among the major constraints is the fear of
job security by some staff of the company might be unsafe if they grant
Again funds available to the researcher
and cost of printing the questionnaire to and from the respondents.
Moreover there was retaining of time so as
to come other course within the limited time.
SIGNIFICANCE OF THE STUDY
the business world the main objective is to maximize profit by providing goods
and services of fair, comparative, and affordable prices no management can
ignore profit maximization unless it will be stifled out of business.
Hence, this study is significant with the
(1) The study
will determine whether budgeting as tool for planning and control played any
significant role toward ensuring portability and efficient rendering of goods
the role-play by the management in budgeting and whether they ensure to the
the role of budget as a tool for effective and efficient utilization of scare
(4) The study will help future researcher on
budgeting and budgetary control with emphasis on manufacturing industry.
DEFINITION OF TERMS
institution of cost and management accountants define budget as a plan
quantified in monetary terms, prepared and approved prior to a define period
usually showing planning income to be generated and or expenditure to be
incurred during that period and the capital to be employed to attain that
This is the
different between planned (budgeted) and actual result (cost). This may be
favorable where actual cost is less than a standard (budget) cost. If it
unfavorable where actual cost is greater than standard (budgeted) cost.
Alternative terms are MINUS OR PLUS variances, respectively.
This is all establishments whether government
or privately owned.