IMPACT OF BUDGET AND BUDGETARY CONTROL (A CASE STUDY OF MORRIS FERTILIZER COMPANY MINNA, NIGERIA STATE)
Budgeting is essentially concerned with planning and its implementation of expected income and expenditure for a special period of time.
There is need for good planning of the budget in every organization because any organization that does not plan and implement its budget is expected to encounter a lot of problems. These problem range from mismanagement of limited research to reckless management habit of not adhering to budgetary control measure.
Budget and budgetary control are two accounting techniques which top management adopt to achieve it task of planning co-ordinating directing and control in an organization. Planning is mainly concerned with the future and selection of policies, strategies, tactics and action required to achieve these objectives.
Planning was previously based on historical cost conventions. This process increased the emergency decision which top management had to make because historical cost conventions are aid future oriented they do no aid planning.
In order to reduce to management’s emergency decision making process and this and planning variable budgets were introduced. This is so because managers want to know more than they have done currently in relation to cost period performance they also wants to know how they have done currently in relation to their current targeted performance.
Control on the other hand follows closely after action has taken. It is a process where by actual performance is compared with targeted/ budgeted performance any deviation from his target are investigated for an in depth or positive explanation given.
Budgetary control is the techniques used for this purpose and when it is combined with budget it becomes part of reasonability accounting. This aim of budgetary control is to provide a formal basis for monitoring the progress of the organization as a whole and of its component part towards that achievement of the objective specified in the planning budgets.
Budget enjoy a wide application they can be used in our private houses where a civil servant who earns a monthly income will map out his objectives and plans effectively with what he has to achieve those objectives.
BACKGROUND INFORMATION OF MORRIS FERTILIZER COMPANY
The research work on the impact of budget and budgetary control on the performance of Morris fertilizer company would not be complete without background information of the organization.