BUDGETING AND BUDGETARY CONTROL IN BUSINESS ORGANIZATION (A CASE STUDY OF EMINITE NIGERIA LIMITED EMENE ENUGU BRANCH)
in BUSINESS ADMINISTRATION PROJECT TOPICS AND MATERIALS on September 7, 2020CHAPTER ONE
INTRODUCTION
- BACKGROUND TO THE STUDY
A budget is a financial and a quantitative statement prepared prior to a defined period of time of the policy to be pursued for the purpose of attaining a given objective.
Nweze (2004) see Budget as a plan quantified in monetary terms, prepared and approved prior to a defined period of time, usually showing planned income to be generated and or expenditure to be incurred during that period and the capital to be employed to attain a given objective. A budget is an attempt made at the beginning of each financial year to plan the profit and loss account for the year and to aim for a definite balance sheet. This profit planning must be a well thought out operational plan with its financial implication expressed as both long and short range profit plans. Budgetary control is the establishment of policies and the periodic review or comparison of the actual result with the budgeted performance either to secure approval for individual action or to serve as a remedial course of action. Budgetary control whereby actual state of affairs can be compared with the planned for by the management, so that appropriate action may be taken to correct adverse situation that may occur before it is too late. It is also used to fix responsibility.
A budget systems serve the needs of management in respect of the judgments and decision it is fruited to make and to provide a basis for the management functions of planning and control. Developing a budget is a critical step in planning any economic activity. This includes business, governmental agencies and individuals.
Therefore businesses of all types and governmental units at every level must make financial plans to carry out routine operations, to plan for major expenditures and to help in making financial decisions.
On this background, every organization no matter nature has a plan for the future, simply because the success of any organization depends on the level of plan that is put into the organization.
