1.1 BACKGROUND OF THE STUDY
Any organization whether public or private, that fail to plan is planning for failure, so therefore planning can be defined as the process of establishing and clarifying objectives and goals and determing the policies the policies and procedures necessary to meet these objectives and goals. This study is to bring light into different budgetary systems as being adopted in the medium scale industries. As budgetary is made up of budgetary planning as well as budgetary control. Accountants and managers of business need to ensure that emphasis on control of plans comparing actual operation against planned to identify variance upon which corrective action can take place especially under this economic condition have to be maintained.
For the past years, Nigeria has been experiencing economic fluctuation which has led to un table economic activities. Therefore, this has incapacitated the budgeting system adopted in various medium scale industries and as a result has great impact on the budgetary control due to discrepancy in variances resulted into. As a matter of fact, this has a great effect on profit of the medium scale industries.
According to chartered institute of management Accountant (CIMA) budgetary control could be defined as “the establishment of budgets relating the responsibilities of executives to the requirement of a policy, and the continuous comparism of actual performance with budgeted result either to secure by individual actions, the objectives of such policies on to provide a basis for its” revision.
It is therefore the responsibility of the management to ensure that all the variance functions of organization are co-cordinated by preparing plans of actions for future period.
These detailed plans are usually referred to as budgets.
Budgetary control and standard costing techniques are regarded as the two principal control techniques at the disposal of the management accountant when evaluating the budgetary system of any set-up.
This is because both techniques involve.
a) Setting up target
b) Accumulation of historical cost
c) Comparing actual result with targets.
d) Taking corrective measures in the variance highlighted.
Hopefully, this study will be of immense contribution to medium scale industries in Nigeria in widening their knowledge as regards budgetary control and the for adopting appropriate budgeting system in a particular economic condition.
1.2 STATEMENT OF THE STUDY
Medium scale industries world-over are faced with the problem of budgetary system. The problem is facing suitable system of budgetary as regards different sectors of operation that will not have adverse effect on the budgeted income of a manufacturing industry in medium scale as well as taking necessary corrective measures on the variance highlighted consequently to reduce deviation from standard set.
Whether a medium scale industry is adopting fixed, flexible, control or rolling and programmer planning system of budgeting, more important for satisfactory control, budget requires regular review and modification to reflect changing conditions in the business environment.
OTHER SIMILAR BANKING FINANCE PROJECTS AND MATERIALS
A CRITICAL ANALYSIS ON THE USE OF FINANCIAL STATEMENTS IN ASSESSING THE PERFORMANCE OF AN ORGANIZATION (A CASE STUDY OF FIRST BANK NIGERIA)
ABSTRACT This project work is carried out to examine the contribution of micro finance banks to the development of Small and medium scale enterprises in Nigeria. The Brass micro finance bank is used a...Continue reading »
A STUDY ON THE ACCEPTANCE AND ADOPTION OF THE CBN CASHLES POLICY IN PORT HARCOURT, NIGERIA
CHAPTER ONE INTRODUCTION 1.1. BACKGROUND TO THE STUDY One of the prerequisites for the development of national economy according to Ajayi et al, 2006 is by encouraging a payment system that is secu...Continue reading »
A STUDY ON THE IMPACT OF BUDGETARY CONTROLS ON THE PERFORMANCE OF AN ORGANIZATION (A CASE STUDY OF FIDELITY BANK PLC)
CHAPTER ONE INTRODUCTION 1.1. BACKGROUND OF THE STUDY AND PROFILE OF THE ORGANIZATION Following the uncertainties prevailing in the Nigerian business environment today, managers and stakeholders mu...Continue reading »
ANALYZING PERFORMANCE APPRAISAL TECHNIQUES IN UNION BANK NIG PLC
CHAPTER ONE INTRODUCTION 1.1. BACKGROUND OF THE STUDY In any evaluation of the condition necessary for the growth and survival of an organization, the role of performance appraisal is a strategic f...Continue reading »
AUDIT INDEPENDENCE: ENHANCING ACCOUNTABILITY AND TRANSPARENCY IN CORPORATE ORGANIZATIONS
CHAPTER ONE INTRODUCTION 1.1. Background of the study The subject of transparency and accountability in modern day corporate organizations has continued to receive attention as never before. It has b...Continue reading »
CREDIT MANAGEMENT AND ISSUES OF BAD DEBTS IN COMMERCIAL BANKS IN NIGERIA
The article on this topic (credit management and issues of bad debts in commercial banks in Nigeria) is an extract from literature review of the project material. The complete project work would be ma...Continue reading »
What are looking for today?
THE EFFECT OF TREASURY SINGLE ACCOUNT ON THE ECONOMY OF NIGERIA
35,743 people found this useful
THE IMPACT OF HUMAN RESOURCE PLANNING ON ORGANIZATIONAL PERFORMANCE
29,416 people found this useful
THE EFFECT OF SOCIAL MEDIA ON STUDENTS PERFORMANCE IN LEARNING LISTENING COMPREHENSION
27,878 people found this useful
TAX ADMINISTRATION IN NIGERIA: CHALLENGES AND PROSPECTS, A CASE STUDY OF LAGOS STATE BOARD OF INTERN...
26,958 people found this useful
FACTORS AFFECTING LANGUAGE CHOICE IN A MULTILINGUAL SOCIETY
21,682 people found this useful
PARTY SYSTEM AND NIGERIA POLITICAL DEVELOPMENT
21,008 people found this useful