Assessment Of Budgeting Practice Of Fafa Food Share Company

Budget , if used properly, can ass ist organizations in cluding the case company to support the pro fit maximization obj ective b y he lpin g m anagers deal with uncertaintie s. thernbudgeti ng proce ss may , however, work to th e firm 's di sa d vanta ge. if not properly hundled The paper is aimed at examining general and behavioral aspects of budgeting andrnbudgetary control practi ce of FAFA food share company such as: for what time periodrnthe budgets are prepared ?, does the company make use of flexible budgetge and zerornbased budgeting ?, which process of budget setting is adopted ?, do budgetess participaternin budget setting and budget discussion?, how often the budgetary procedures are reviewed and who is ta king care of it ?, how often performance reports are prepared and rnvariances are analyzed?rnThe study is based on both pnmary data , collected through• interview and detailedrndiscussi on with co nc ern ed offic ials of the share company, and secondary data collected rnthrough review in g company do cuments (such as corporate reports, performance reports rnCopany plan, and others). non statisti cal data analys is known as content analysis is rnused to analyze data and draw conclusis.rn The results of the study reveal that the company has no well established standing budget rncommittee, no budget manual. Bottom-up approach (a participative style) is used in •rnbudget settin g and budgets are estimated using past year performance as a base (zerorn:- .rnbesed budgeting is not used). Performances reports are prepared monthly. quarterly, andrnyearly with out detailed variances ( flexible budgets are not in corporated

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