Since the inception of organistion set up, budgeting has served as an essential tool for management, planning and control, it is not just only an accounting exercise but came as a result of growing complexity of the business environment and competition in the market place, which have made it an invaluabl management tool.
It is being said “ He who falls to plan, plans t falls “ budgeting is an integral part of planning and control. Again planning an controlling and virtually interchangeable because one can not control without planning. Therefore , planning and control is very important in a competitive profit in each years will be determined by the extent to which is establishes its objective. Develops and coordinate plan to achieve those objective and exercise control over all problems affective as activities 180 as to enable it reach or exceed those plans and take appropriate corrective action were there are variance between budgetary and actual results.
The entire process constitutes the budgeting , planning and control programme. Budget has saved as important tool to abc transport plc. It is a system of controlling costs and company performance. It includes the aspects of budgets preparation , coordinating the department and establishment of responsibilities comparing actual performance with the budget and acting upon result to achieve maximum profitability . this means , the development of a set of estimates of future cost and revenue in a forkm which will coordinate the activities of the company in accordance with selected objectives and will serve as a standard cost for lost of control.
1.1 General Background Of The Study
Budgeting as a tool of managerial , planning and control. Budget has served as an important tool to ABC transport PLC owerri. It is a system of controlling costs and company performance. It includes the aspects of budget preparation , coordinating the department aand establishment of responsibilities comparing actual performance with the budget and acting upon result to achieve maximum profitability.
1.2 Statement Of Problem
The study will work into the budgeting as a tool of managerial liason scheme, the effectiveness of internal control in budget preparation . also the usefulness of the budget as a monitor to the performace of their duty by workers. This study will also unveil budget as an instrument of planning and control in any establishment of organization.
1.3 Objective Of The Study
- To review and appreciate the meaning of budget
- To understand the procedure on budget preparation
- To appreciate the impact of budget in any organization
- To be able to identify the benfit and problem of budgeting
- To assess budget as a tool for management, planning and control.
- To vary vroius types of budget prepared by business companies and non profit making entities.
1.4 Research Questions
Meanwhile, every researcher requires some imminent question that are channeled towards the achievement of successs in the test of hypothetical statement of the research.
The questions of the research may be as follows:
- What is budgetary?
- What is planning and control?
- What are the importance of budgetary in organization?
- Is budgeting actually a tool for management , planning and control?
- Does the management of the company use budget in the decision scheme?
- Does the internal control establish in the budge preparation make it effective?
1.5 Significance Of The Study
The significance of this research work to management in various significance is as follows.
- The research work will lay emphasis on the role of responsibility of management in the preparation and implementation.
- The study will also reveal budget as an invaluable management tool for planning and control
- It will show the essential and necessary process of budgetary process in an organization.
- As part of the overall management planning and control
- The essence of company budget with actual cost as well as budgeted revenue with actual will be revealed.
1.6 Scope Of The Study
The areas cover in this study includes , the background of framework of the budget planning and control . the functions of budget and responsibilities of management in budget. It will also review budgeting as a tool of planning and control with particular inference to ABC transport PLC. And factors influencing budgetary control.
1.7 Limitation Of The Study
Time is one of the constraint encountered in carrying out this study. Otherwise, more groands would have been covered.
This was also a major constraint faced in carrying out this study . witout no doubt, the above mention factors will either directly or indirectly affect the result of this project.
Due to the fear of competitors , management find it difficult to release information mostly required by the researcher.
1.8 Definition Of Terms
The total amount of money that need to be spent by business.
Is a plan quantified in monetary terms which is prepared and approved before the period of time it relates.
Is the process who are many actual target goals are achieved.
This is the power to make decisions about how organizations goals will be achieved.
This is the most difficult functional budget to prepare. The sale budgte is usually prepared in terms of quantities then evaluated at budgeted unit price.
This is to ensure that adequate cash is available at all times to meet the operating needs of the business.
Show the cash receipts and payment for a given paid usually monthly , quarterly and yearly.
Is usually based on a long term plan and used as a basic for development current budgets.
is established for us, over a short period of time, usually one year but some times fees and related to current condition.