THE IMPACT OF BUDGETARY CONTROL ON THE PROFIT OF BUSINESS ENTERPRISE
TABLE OF CONTENT
Title page ii
Approval Page iii
Table of content vi
1.1 Background of the study 1
1.2 The statement of the problem 2
1.3 Objective of the study 2
1.4 Significance of the study 3
1.5 Limitations of the study 4
Review of Related Literature 5
2.1 Budgetary control 5
2.2 Aims and objectives of budgetary control 7
2.3 Problems in monetary control 7
2.4 Budgetary control and profit 8
2.5 Qualities of good budgetary control 9
2.6 Success and application of budgetary control 10
Research Design and Methodology 13
31. Sources of data 13
Secondary sources 13
32. Location of data 13
33. Methods of data collection 14
4.1 Findings 15
Recommendations and Conclusion 16
5.1 Recommendations 16
5.2 Conclusion 17
1.1 BACKGROUND OF THE STUDY
The increasing complexity of the business environment has necessitated a systematic approach to the impact of budgetary control on the profit of business enterprise.
Based on business philosophy, nationally or internationally corporate goal in centered on high production with minimal production cost and hence profit maximization. Sufficient profit is required so that the rating of the efficiency of the business organization will be high.
The owners of the business will expect their rewards as dividends, the creditors require payment, the employees of the business organizations will demand their remunerations and the social responsibility to the community where they are located. All of the demands have to be met form the cash inflow.
As a result, the need arises of the management of the business enterprises to plan their operation and channel their resources into projects that would yield the highest profit.
1.2 THE STATEMENT OF THE PROBLEM
With regards to the problem enumerated in the statement of the problem, this study is aim at the following:-
1. Establishing to interviews relationship between budgeting controls and profit.
2. Creating a better awareness of the indispensability of controls in the consistent profit maximization.
3. Adding to the existing knowledge, the impacts of budgetary controls on profits.
4. Making useful recommendations on their measures that could executed for increase profit.
1.3 OBJECTIVE OF THE STUDY
The following objectives of this study which the researcher have designed to achieve are;
1. To know the aims and objectives of budgetary control.
2. To knows the problem in monetary control
3. To know the budgetary control and profit.
4. To determines the qualities of good budgetary control.
5. To know the success and application of budgetary control.
1.4 SIGNIFICANCES OF THE STUDY
A budget is thus a standard with which to measure the actual achievements of the business enterprises.
While budgetary control is the planning in advance of the various function of a business enterprises so that the business as a whole can be controlled. Therefore, budget and monetary control are inseparable.
High mortality rate of business enterprises in the present phenome have been traced to non application of budgetary controls. With little or no consideration for the influence controls have an profits, some business enterprises move from one accounting period to the other with in adequate controls. As a result, their profit for a number of years have little or no remarkable variation.
Hence the business philosophy is some what defeated and meeting the organization obligation have become a problem.
The organization that manages to establish controls pursuer them so carelessly that the whole substratum collapses. These problem have persisted and is there need for an in depth study on the topic to ease these problems on one hand and to eradicate them on the other hand arises.