TABLE OF CONTENTS
TITLE PAGE PAGES
LIST OF TABLE IV
OF THE STUDY 1
OF THE PROBLEM 3
OF THE STUDY 4
OF THE STUDY 7
OF THE STUDY 7
OF THE STUDY 8
BUDGETARY SYSTEM 14
OF BUDGETING 17
REVIEW AND CONCLUSION 24
OF THE STUDY 28
OF SAMPLE SIZE 29
COLLECTION METHOD 29
FOR ANALYSIS DATA COLLECTED 31
OF DATA COLLECTION INSTRUMENT 32
BACKGROUND OF THE CASE STUDY 33
PRESENTATION ANALYSIS AND INTERPRETATION 36
AND ANALYSIS OF DATA ACCORDING TO
RESEARCH QUESTION 36
OF HYPOTHESIS 43
CONCLUSION AND RECOMMENDATION
BACKGROUND OF THE STUDY
Budgeting concept is as old
as man. We learn from history that the warmly man had to determine what ever he
needed in advance before it eventually materialized.
This is very obvious in
the present day lives of individual of state or a nation. As a nation plan
ahead in term of revenue and expenditure within a specified period of time. So
also an individual or state conceptualized anticipated revenue and disbursement
within a specified period of time.
Every establishment, be
it public or private when planning, find it necessary to incorporate budget and
institute a proper executive for the purpose of translating policies, coordinating
activities as well as financial control in order to achieve the last result.
Budget planning is the
process of preparing detailed short term plans know as budget for the function
activities and departments of the organization and converting the long term
corporate plan into action.
The budgetary process is
an integral part of both with planning and control. Too often budget are
associated with negative penny pending control activities where as the full
process is much broader and more positive than that. Budgeting is about making
plans for the future implementing those plans and monitoring activities to see
whether they conform to the plan.
To do this successfully,
it requires full top management support, co-operative and motive middle
managers and staff, as well as organized reporting system.
The need for control
system and performance report has become over more critical in every years as a
result of excessive budget restriction even for the manufacturing and service
operation of any business organization depends certain essential elements such
must be an information system that records programs of an activity or group of
activities for a specific length of time.
structural organization element to which the activity is assigned.
formed reporting document for generating FEEDBACK of achievement level to the
supervisor or manager of the organization
planned pre-determined activity measure against which actual achievement measure
can be compared.
decision making capacity that exists within the organization element or unit to
take action that will bring achievement level in line with the planned level.
above five element are of paramount important to the concept of control in a
nutshell, a budget is a parameter which measure, firms e.t.c while planning
invest systematically looking into the future so that decision can be made to
day which will bring the organization its desire results.
existing budgetary planning and implementation method in coca-cola bottling
company are examined. Bits strength and weakness and suggestion with
recommendation are give as to how they could be improved.
STATEMENT OF THE PROBLEM
of proper planning, inadequate budgeting skills and non-judicious follow-up of
budget lead to over-spending habit mostly exercised by management. This is the
effective or consequence are as follow:
by management in preparing and approving budget
exit an opportunity for misappropriation
expenditure cannot be as constrained
and actual expenses and income are bound to produce abnormal various and
variance cannot be used effectively in measuring performance.
budget planning implementation and execution of management decision of a
company often influence by individual personalities and the state of cultural
fashion which budget are used in performance and evaporation tend to influence
the behaviors and attitude of the participation as enunciated by I kenis, that
is, appointive and consequently, a negative attitude.
supportive approach will result in positive attitude and with high level of
motivation. This is very good food of thought to companies expecting to survive
by achieving their objective.
OF THE STUDY
aim of this study is to conduct on the effectiveness of budgetary control as an
effective tool for management planning.
study also determines the effect of budget planning on coca-cola bottling
company. The research embarked upon is hoped to provide a base not only for managers
but also for organization as a whole for assessing their performance problem
findings, constraint or limitations imposed by using budget planning and
executing planned budgets.
study will further go a long way in improving the attitude and performance of
the individuals, employees and employers in achieving the over all
organizational budget goals.
research is also designed to help investors financial institution and
government e.t.c in budgeting and planning for assessing their performance.
the research will review necessary literature on budgeting and budgetary
control type of budget and some budget terminology.
there relationship between budgeting and budgetary control?
extent can budgeting and budgetary control be used as tools in planning and
control in an organization?
is the problems encountered by organization in uses of budgeting and budgetary
are logical supposition or on educational conjunctive that will aid to solve
the problem established earlier in this research.
hypothesis will be tested to prove major problems which will be represented, by
null hypothesis (H0) and the alternative hypothesis (Hi)
attempt to research into budgeting and budgetary control as an effective tools
for planning and controlling and it will generate four set of hypothesis which
intend to subject to critical test and analysis by using table / percentage
method and chi square distribution.
H0 budgeting and budgetary control
are not related and united
Hi : budgeting and budgetary control
are related and united
H0 : departmental budget are often
seen as non-important
Hi : departmental budget are often
seen as important
H0 : budgetary control is not easy to
Hi : budgetary control is easy to
H0 : inefficient planning skills do
not hinder budgeting
Hi : inefficient planning skills
SIGNIFICANT OF THE STUDY
success of any business depends on the dynamic managerial performance and
efficiency crown with prudent budget planning and proper execution. Under a
competitive environment, the ability of a firm to generate sufficient profit
and competency in planning for the future rest largely on the quality of its
budgeting and budgetary control. It is expected in this research that the
findings and recommendation will help to show how budgeting process provide for
the co-ordination and how it forces managers to think of the relationship of
their function with others.
SCOPE OF THE STUDY
scope of the study is limited to budget planning and control, it does not
contain budgetary as a while because budgeting is a very wide topic.
research work shall be five chapters, chapter one will cover the
conceptualization of the term and brief introduction of the subject matter
chapter two will review the necessary literature in the areas of subject
three and four namely on research methodology and analysis of data especially
whole summary findings, recommendation and conclusion will be looked at in
LIMITATION OF THE STUDY
writing this research work, the researcher may faced many problems it is
obvious that the economy which are:
Financial Problem: it is obvious that
the economy of the country affect the individual in his research work and the
researchers needs many not be limited.
Time Factors: Some personal problems
may be encountered, therefore, the study will be able to cover every things on
Collection: Since the study requires information from the organization, it may
pose for the researcher to gather information. Many people may be unwilling to
give information about their organization and it may require a lot of
persuasion before some of them will response to interview this invariably serve
as limitation to the study because the findings are based on the information
supplied by the respondents.
Finally, one major limitation is the
fact that study is centered on one organization in bottling company among
others bottling company and base on the findings recommendation are made and
this may not be true of all bottling companies and there limiting the general
application of any recommendation.