Budgeting as a tool for planning and control in manufacturing industry

 

Table Of Contents

  • <p> </p><p>Title Page &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; i</p><p>Approval Page &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;ii</p><p>Dedication &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;iii</p><p>Acknowledgement &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; iv</p><p>Abstract &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; v</p><p>Table of content &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;vi</p><p>List of table &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;x</p><p><strong>

Chapter ONE

INTRODUCTION

  • </strong></p><p>
  • 1.1&nbsp; &nbsp; &nbsp;Background of the study &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;1</p><p>
  • 1.2&nbsp; &nbsp; &nbsp;Statement of the problem &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;5</p><p>
  • 1.3&nbsp; &nbsp; &nbsp;Objective of the study &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; 6</p><p>
  • 1.4&nbsp; &nbsp; &nbsp;Hypothesis &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;7</p><p>
  • 1.5&nbsp; &nbsp; &nbsp;Research question &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;8</p><p>
  • 1.6&nbsp; &nbsp; &nbsp;Significance of the study &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;8</p><p>
  • 1.7&nbsp; &nbsp; &nbsp;Scope of the study &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; 9</p><p>
  • 1.8&nbsp; &nbsp; &nbsp;Definition &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;10</p><p><strong>

Chapter TWO

LITERATURE REVIEW

  • </strong></p><p>
  • 2.1Definition of budget &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; 12</p><p>
  • 2.2Features and functions of budget &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; 14</p><p>
  • 2.3Preparation of budget &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; 19</p><p>
  • 2.4Types and methods of budget &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;23</p><p>
  • 2.5Planning function in an organization &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; 33</p><p>
  • 2.6controlling functions in an organization &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; 37</p><p>
  • 2.7Budgetary control and analysis of variance &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; 40</p><p><strong>

Chapter THREE

RESEARCH METHODOLOGY

  • </strong></p><p>
  • 3.1&nbsp; &nbsp; &nbsp;Research design &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; 43</p><p>
  • 3.2&nbsp; &nbsp; &nbsp;Area of the study &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;43</p><p>
  • 3.3&nbsp; &nbsp; &nbsp;Population of the study &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; 44</p><p>
  • 3.4&nbsp; &nbsp; &nbsp;Sampling method &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; 44</p><p>
  • 3.5&nbsp; &nbsp; &nbsp;Research instrument &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; 46</p><p>
  • 3.6&nbsp; &nbsp; &nbsp;Validity and reliability of research instrument &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; 47</p><p>
  • 3.7&nbsp; &nbsp; &nbsp;Sources of data &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;48</p><p>
  • 3.8&nbsp; &nbsp; &nbsp;Method of investigation &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; 50</p><p><strong>

Chapter FOUR

DATA PRESENTATION AND ANALYSIS

  • PRESENTATION, ANALYSIS AND INTERPRESENTATION OF DATA</strong></p><p>
  • 4.1presentation and analysis of data &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; 52</p><p>
  • 4.2Testing of hypothesis &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; 65</p><p><strong>

Chapter FIVE

SUMMARY, CONCLUSION AND RECOMMENDATIONS

  • OF FINDINGS, CONCLUSION AND RECOMMENDATION</strong></p><p>
  • 5.1Summary of findings &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; 73</p><p>
  • 5.2Conclusion &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;77</p><p>
  • 5.3Recommendation &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; 78</p><p>References</p><p>Appendix</p><p>Questionnaires</p><p><strong>LIST OF TABLE</strong></p><p>Table 4.1.1: &nbsp; &nbsp;Employment of planning and control &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;53</p><p>Table 4.1.2: &nbsp; &nbsp;If the company uses budget &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; 53</p><p>Table 4.1.3: &nbsp; &nbsp;Whether planning and control helps</p><p>efficiency &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; 54</p><p>Table 4.1.4: &nbsp; &nbsp;Ways budgeting has helped the organization55</p><p>Table 4.1.5: &nbsp; &nbsp;The effect of decision making in the</p><p>organization &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; 56</p><p>Table 4.1.6: &nbsp; &nbsp;If the company has encountered any problem in &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;organizational decision &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; 56</p><p>Table 4.1.7: &nbsp; &nbsp;The problems encountered by the company &nbsp;57</p><p>Table 4.1.8: &nbsp; &nbsp;Comparison between budget and</p><p>Performance &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; 58</p><p>Table 4 .1.10:Budget deviation &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; 59</p><p>Table 4.1.11: &nbsp;Solutions to the problems &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;59</p><p>Table 4.1.12: &nbsp;Agreement with the performance &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;60</p><p>Table 4.1.13: &nbsp;If the departments are allowed to exercise</p><p>control &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;61</p><p>Table 4.1.14: &nbsp;If utilization of resource achieved with budgeting &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; control &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;62</p><p>Table 4.1.15: &nbsp;The effect of economic recession &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; 63</p><p>Table 4.1.16: &nbsp;The area of effect &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; 64</p> <br><p></p>

Project Abstract

<p> </p><p>This research work has focused on investigation on the use of budgeting as a tool for planning and control in topical manufacturing industry like Nigeria breweries Plc, Enugu. The objective of the study is the 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 objectives 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 is include</p><p>1. &nbsp;Managers use budget as a tool for planning and controlling the good of the business or organization</p><p>2. &nbsp;Decision making is performed in a manufacturing industry using budget.</p><p>3. &nbsp;Utilization of resources is achieved with the use of budget and budgetary control.</p><p>Following the investigation and analyzasion of the data the following findings were made</p><p>1. &nbsp;The organization uses budgeting in achieving their goals and objectives which can be with out</p><p>2. &nbsp;The main objective of the organization is maximization of profit which will be done through budget.</p><p>3. &nbsp;Efficiency and effectiveness of the organizations operation as enhanced through the use of budgeting e.t.c.</p><p>From the findings the conduction were arrived that budgeting is a very essential and indispensable tool for planning and control it helps management to be well structured in sustaining the growth and expansion of the organization.</p> <br><p></p>

Project Overview

<p> </p><p><strong>INTRODUCTION</strong></p><p><strong>1.1 BACKGROUND OF THE STUDY</strong></p><p>Business organizations need planning to achieve their aims and objective.</p><p>It thorough planning in an organization cannot be done without involving the act of budgeting. The management has the purpose of providing feed-forwarding process.</p><p>The concepts of feed-forward process into provide each manager with guidelines for making operation decision on a day-to-day basic.</p><p>Budgeting deals with plants and monitoring activities to ascertain whether they confirm to the plan.</p><p>This is the control and coordination aspect of budgeting.</p><p>Manufacturing industries can only achieve profit maximization by proper planned use of available resource.</p><p>This is sustained when different activities are efficiently coordinated and decisions taken in the organization are result oriented.</p><p>Business organization requires the use of some techniques in the formula and adoption of planned and defined system and tools with a view to achieve set goals. Such tools and system include budgeting variance analysis and budgetary control. The process of setting goals to be achieved in the future time and determining this planning into financial target can be described as Budgeting.</p><p>Reg, H. Garrison, in his opinion, defined budget, thus, a budget is a detailed plan showing how resources will be required and used over some specific time interval. It repented a plan for the future expressed in a formal qualitative terms. The out of preparing a budgeting control,</p><p>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 maximized as its main objectives with centre focuses in Nigerian Breweries Plc, Enugu</p><p>Chapter one is an introduction to the study concerning such issues as:</p><p>1. &nbsp;Statement of problem</p><p>2. &nbsp;Purpose of the study</p><p>3. &nbsp;Statement of hypothesis</p><p>4. &nbsp;Research question</p><p>5. &nbsp;Scope and limitation of the study</p><p>6. &nbsp;Definition of terms</p><p>Chapter two present the literature review which such issues as:</p><p>1. &nbsp;Definition of budget</p><p>2. &nbsp;Feature and function of budget</p><p>3. &nbsp;Preparation of budget</p><p>4. &nbsp;Types and methods of budget</p><p>5. &nbsp;Planning function in an organization</p><p>6. &nbsp;Problems associated with budget</p><p>7. &nbsp;Controlled function in an origination</p><p>8. &nbsp;Budget control and analysis of variance.</p><p>Chapter three presents the research design methodology</p><p>The source of data collected for analysis and treatment of some of the problem encounter during data collected were examined and analysis in details to enable us draw conclusion there by making recommendation.</p><p><strong>1.2 &nbsp; &nbsp; </strong><strong>STATEMENT OF PROBLEM</strong></p><p>This 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 materials.</p><p>Management is filed with the problems of how to make use of available scarce resources your order to achieve the objective of profit maximization.</p> <br><p></p>
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