Get the complete project »
- The Complete Research Material is averagely 52 pages long and it is in Ms Word Format, it has 1-5 Chapters.
- Major Attributes are Abstract, All Chapters, Figures, Appendix, References.
- Study Level: BTech, BSc, BEng, BA, HND, ND or NCE.
- Full Access Fee: ₦4,000
1.0 BACKGROUND TO THE STUDY
The changing complexity of business activities and the ever changing conditions of business environment – social, economic, political and technological advancements make it ever increasingly difficult for an organization to consistently earn a profit that could be termed a fair return on the capital invested. Budgeting and budgetary control has for long been a technique of interest to management accountants, business experts and financial evaluators. Experts have conventionally accepted budgeting and budgetary control systems, which are the basic components of budgetary system, as a fundamental basis for profit planning and control in an organization.
Economic enterprises engage in many activities that require not only planning but also monitoring and co-ordination of plans. We explore the relationship among those activities in this research work. The comprehensive budget is a tool to make planning effective and provides a means where the activities are going according to plan. In a formal way the budget captures and reflects the results of planning decision, from decision about prices, product mix and cost structure, those about dividend and major new investments. Budgeting is the act of preparing and formulating a budget (Certified National Accounts, 2006). And because the budget is a planning or more accurate, a planning process it is the process in which objectives, policies and policy measures, funding requirement and sources and allocations of fund stated in the budget are determined. The details of the activities and procedures will certainly differ from sector to sector (ANAN, journal, 2006).
Budgetary control as one of the component of budgetary system refers to the use of budgets to control the activities of the organization (ANAN, 2006). It relates the responsibilities and duties of executive to the requirement of policy and the continuous comparison of actual performance with expected results so as to secure either by individual or collective action the objective of such organizational policies or a revision there of (CIMA).
Therefore, a number of factors are to be considered and put in place for the effective use of this technique of budgeting. For instance, Babatunde R. Yusuf (2001) suggested that the decisions of corporate organizations must be well defined and apart from obtaining the support of top management echelon, the line and staff managers must secure information about the policies, preparation of a budget manual, by the budget committee etcetera. To this end, the study of impact of budgeting and budgetary control, in a manufacturing organization is worth purchasing. It is hoped that, the results of this study will provide empirical evidence for the effective guidance to modify the efficiency of the system in manufacturing organization.
1.1 STATEMENT OF PROBLEM
In the light of the above arguments, budgeting and budgetary control involves putting in place every necessary requisite feature to impact favourably on the manufacturing organization and to make it more effective and efficient.
The identification of those problems encountered in Evans Medical plc as an indefinite approach to budgeting and budgetary control vis-à-vis. The effectiveness and efficiency of the manufacturing organization is another area of interest for this research study.
Also in most cases, manufacturing organization in the private sector lacks the provision of standard budgetary systems put in place by which the organization’s actual performance is ascertained.
In addition to the above postulation, this research work seeks to address probable areas of threats and opportunities open to Evans Medical plc as may be imposed by human element. Since a sector like that depends and concentrates on human resources for the production and marketing of pharmaceutical product.
If the tradition of doing things haphazardly persists, where a particular technique is not followed and pursued as consistently as possible as it should be, the effectiveness and the efficiency of the company, Evans Medical plc, in terms of productivity may be adversely affected.
In view of the above, the study is aimed at proffering lasting solutions to those identified problems.
1.2 PURPOSE OF THE STUDY
This research study is aimed at critically and carefully making a consideration of the impact of budgeting and budgetary controls in a manufacturing organization such as Evans medical Plc, hence considering the extent to which its effect and purpose, importance and functions can influence and contribute to the company.
Therefore, to accomplish the above purpose attention is directed principally on such areas so as to understand the meaning of the concepts of budget, budgeting and budgetary control, also identifying the different types of budgets and control to be applied cum their effective and efficiency.
In order to identify and investigate one relationship between the requisite feature and the efficiency of the budgeting and budgetary control, in a manufacturing organization with special reference to Evans Medical plc.
In the same vein, to examine the impact and the effect, whatsoever, of good budgeting and budgetary control system on the effectiveness and efficiency of a manufacturing company like Evans Medical plc.
It is also the objective of this study to validate whether budgeting and budgetary control system gives a standard by which the actual performance of the organization is ascertained.
Also, to find out and state the effect of the human element on budgeting system and lastly to determine the extent to which organizational goals and objectives are achieved vis-à-vis budgeting and budgetary control as a technique.
a) To combine ideas of all levels of management in the preparation of budget;
b) To Coordinate various activities in business organisation;
c) To Reveal where an organisation needs to remedy a situation;
d) To Plan and controll all income and expenditure to achieve maximum benefits for the organisation;
e) Provision of yardstick against which actual result can be compared along with predetermined result;
f) Channelization of capital expenditure in most profitable manner
1.3 RESEARCH QUETIONS
Research questions are those interrogative statements that arise often from the course of study, such questions are meant to provide information to the study. In order to achieve the purpose of this research study, the study will attempt to provide answers to the following research questions.
a) What importance does budgeting technique serve in a manufacturing company in Nigeria?
How does budgeting aid the planning of a manufacturing compnay profit in Nigeria?
c) How does budgetary control affect the working performance of employees in a manufacturing company in Nigeria?
d) Why do manufacturing companies in Nigeria lack adequate skill for planning and controlling policy formulations and implementations?
e) In what way do inadequate data and records create problems for manufacturing companies in formulating effective budgeting?
1.4 HYPOTHESES FORMULATION
Hypothesis is an assumption, a statement made about the value of a parameter or the observed fact of a distribution put forward to be tested and proven so as to reject or accept the preconceived concept. To provide answer to the research questions arising from the study, the following hypotheses are postulated.
a) Ho1: There is no significant relationship between budgetary planning and control on organisation performance;
b) Ho2: Effective budgetary control does not influence the result achieved;
c) Ho3: Budgeting technique is of no importance in a manufacturing firm;
d) Ho4: Budgetary control does not affect the working performance of an employee in a
1.5 SIGNIFICANCE OF STUDY
This significance of the research project is to provide both theoretical and practical lasting solution to problems encountered by managers in instituting control in proposed plans of the organization in order to achieve the corporate objectives and to aid management efficiency.
This study also is expected to supply the relationship between the necessary requisite features to be put in place and the efficiency and effectiveness of budgeting and budgetary control system in an organization like Evans Medical plc.
Also, this research project will among other things to be expected to put forward the relationship between a good budgetary system and the efficiency of a manufacturing organization like Evans.
Another importance of this study is it shall establish the fact that budgeting and budgetary control give standards by which the organizational actual performance is ascertained.
Lastly this study is aimed at appraising the effect human elements have on the process of budgeting and budgetary control.
1.6 METHOD TO BE USED IN CARRYING OUT THE RESEARCH
Research methodology deals with the description analysis and interpretation of various methods employed for collecting relevant information necessary for research work this research study is concerned with the impact of budgeting and budgetary control system in a manufacturing organization. For the purpose of collecting necessary data for this research work, primary and secondary data collection method will be used. The primary data collection method will be through the following:
1. Structured questionnaire
2. Personal unstructured interview
The secondary data will be collected from reports and documents from the company. Also, reports outside the company and from library and desk research literatures will be used.
In this study, descriptive method will be used to analyze data and also in resting hypothesis, chi-square (X2) will be employed. Findings from this research study will be discussed in the light of the research problem hypothesis, purpose research questions, literatures of the research and other relevant issues conclusions will be drawn and recommendations and suggestions also will be made.
1.7 SCOPE AND LIMITATION OF STUDY
The premise on which this study is based is that, organizational performance of manufacturing companies is dependent upon efficient and effective budgeting and budgetary control system of manufacturing organization in one private sector with special reference to Evans Medical plc, a pharmaceutical manufacturing company. The study will also touch briefly the budgetary control process of related companies in the industrial sector.
The study will further identify the fundamental limiting factor which most managers usually encounter in the preparation of the organizational budget.
In the course of conducting this research work it is expected that the following will constitute impediments to the effective conduct of the study
a) Time constraint within which the study must be completed.
b) Financial constraint
c) Inaccessible and inadequate data
d) Also, combining project work with several other activities is another stressful task that may not allow me to cover research materials extensively.
Nevertheless, I believe the above limitations will in no way affect the reliability and validity of the research study.
1.8 DEFINITION OF TERMS
1. Budget: According to CIMA, it is defined as a future plan of action or an approved estimate stated in both financial and quantitative term, prepared and approved prior to a definitive period of time of the policy to be pursued in order to achieve an objective during that period.
2. Budgeting: This is simply a process of preparing a detailed short term plan (budget). It is the process in which objectives policies and policy measure, finding requirement and source and allocation of funds stated in the budget are determined.
3. Budgetary Control: Simply put, it is the use of budget or budgets to control operations and activities of the organization. It refers to the continuous comparison of a level with targeted result so that corrective action could be taken in the adverse variances while actions taken to the advantage of favourable variance.
4. Budget Committee: This is a committee responsible for the preparation of the organization’s budget. It usually comprises of executive management, senior budget holders and accounting officers.
5. Budget Manual: This document describes the objectives and procedures involved in budgeting. It provides a useful reference source for managers responsible for budget preparation.
6. Budgetary System: This according to UMA represents an amalgamation of three major components parts of budgeting, budget and budgetary control.
7. Fiscal Policy: Refers to government budgeted measures to regulate the macro variables and economic activities through her expenditure and taxation.
8. Standard: This is a predetermined level of activity.
9. Rolling Budget: UMA defines it as the continuous updating of a short term budget by adding say a further month or quarter so that the budget can reflect current condition.
10. Zero Based Budgeting (ZBB): This requires a budget center to justify the entire budget from the scratch (Zero) in each year of budget formulation.
1.9 HISTORICAL BACKGROUND OF EVANS MEDIAL PLC
Evans medical plc, was incorporated in nig on 23rd April, 1954, under the name of Allenbury and Hasbury (Nigeria) Limited as a pharmaceutical manufacturing and healthcare delivery company. Presently, its head office is Plot 6, Abimbola Street, Isolo – Lagos. In 1958, a merger with Glaxo Laboratories a major UK based pharmaceutical Enterprises gave birth to Glaxo-Allenbury (Nig) Ltd. In 1970, the company changed its name again to Glaxo Nigeria Ltd their first factory in Nigeria was built in 1960 at Apapa where they started their manufacturing activities in 1963. In 1982, the company commissioned its first plant in Agbara for the manufacturing of its pharmaceutical range of products with capacity for tablets and syrups. Again in 1989, inspired by the success of the first plant in Agbara the company built and commissioned its food factory in Agbara.
The company became a public limited company in 1977 and was listed on the Nigerian stock exchange in 1979 after 60% of its shares were offered to the Nigeria investing public in compliance with the indigenization decree of the then military government. Glaxo group retained the other 40% of the share capital until taken over by Deveharm limited, an offshore company of the Glaxo Group. On 30th March, 1994 the name of the company was finally changed to Evans Medical plc. In compliance with the provisions of the companies and Allied Matters Act CAMA 1970.
Evans Medial plc, over the years and currently parades a very wide and impressive range of effective and highly sought after product which are household names in Nigeria and beyond. Such products include allenbury’s glucose ‘O’ multivite, Cofta, Ferbeian, dequadin, capquin, pirition.
These are in addition to a very effective and efficient range being introduced as a result of the strategic alliance and cooperation with other reputable players in the pharmaceutical and healthcare sector acting on the optimistic report of the consultants, the company embarked on a comprehensive and aggressive turn-around programme which amongst others involve the revival of the company through the general based African management services company (AMSCO) which is an organization formed for the purposes of providing management and training support for African companies.
At this point also, the company ventured into diverse fields such as antibiotics, analgesics and anti-malarias by going into strategic alliances with other credible organizations, such as cipla of India for the manufacturing of and marketing of ARVS (anti-retrovirals and other prescription drug as well as healthcare and equipment for the manufacturing and marketing of hospital equipment and disposables. These are in addition to the expansion of the food sector of the company, which was mainly glucose with the introduction of the company’s brand of instant milk power, Apex, whose acceptance and demand has been very encouraging.
Highly worthy of note is the successful of right and public issues of shares of Evans Medical plc, which achieve 68% and 85% success respectively. This confidence in the profitability of Evans Medial plc as forecasted by the auditing firm of price water house was illustrated by the astronomical rise in the share value from the offer rate.
Having fully and firmly established their range of quality products and services for over 50 years to Nigeria and Nigerians, a celebration of its Golden jubilee culminated in the unveiling of the new corporate logo of the Evan Groups, which is Evans the hop.
SCOPE OF THE STUDY
The study is restricted to cover Evan Nig plc, and suggest solution and recommendation on the topic of discussion which is budgeting as an effective tool for planning, control for increasing productivity in Evan Nig plc
You either get what you want or your money back. T&C Apply
You can find more project topics easily, just search
SIMILAR ACCOUNTING FINAL YEAR PROJECT RESEARCH TOPICS
1. EFFECT OF FRAUD MANAGEMENT ON A SURVIVAL OF A COMPANY (A CASE STUDY OF FIRST BANK NIGERIA PLC, UGHELLI BRANCH)» CHAPTER ONE INTRODUCTION 1.1 Background of The Study The issue of fraud in company especially the banking industry in Nigeria and indeed, all over the...Continue Reading »
» CHAPTER ONE 1.1 INTRODUCTION One mechanism that has been widely used in worldwide organizations to monitor the financial reporting process is the esta...Continue Reading »
» CHAPTER ONE 1.0 INTRODUCTION 1.1 BACKGROUND OF THE STUDY A business combination takes place when two or more business organization come together to fo...Continue Reading »
4. FINANCIAL STATEMENT FRAUD IN AN ORGANIZATION: ISSUES AND SOLUTION( A CASE STUDY OF FIRST CITY MONUMENT BANK)» CHAPTER ONE INTRODUCTION 1.1 STATEMENT OF THE PROBLEM The current business environment and even more economic recession, have in recent times pushed t...Continue Reading »
» CHAPTER ONE 1.0 INTRODUCTION 1.1 BACKGROUND OF STUDY Given today complex and rapidly changing management climate, most large companies, major institut...Continue Reading »
6. INVESTIGATION INTO THE CAUSES OF TAX EVASION IN LAGOS STATE (A CASE STUDY OF SELECTED SMES IN IKEJA LGA)» CHAPTER ONE INTRODUCTION 1.1 Background of the study The concept of taxation has been a concern of global significance as it affects every economy irr...Continue Reading »
7. THE EFFECT OF TAXATION ON INVESTMENT DECISION: [A CASE STUDY OF SELECTED COMPANIES IN ANAMBRA STATE]» ABSTRACTThe choice of the topic “The Effect of Taxation on InvestmentDecision” comes from the fact that most management of businessentities are ye...Continue Reading »
8. THE ROLE OF COOPERATIVE SOCIETIES IN THE DEVELOPMENT OF SMALL AND MEDIUM SCALE INDUSTRIES IN NIGERIA» CHAPTER ONE INTRODUCTION 1.01 BACKGROUND TO THE STUDY. Cooperative societies are often regarded as one of the microfinance institution (MFI’s) t...Continue Reading »
» ABSTRACT This study was to assess the significance external auditor‟s in the examination of financial statement of first Bank of Nigeria Plc., Enugu...Continue Reading »
10. A COMPARATIVE ANALYSIS OF THE IMPACT OF INVENTORY VALUATION METHODS ON FINANCIAL REPORT STATEMENT IN SOME MANUFACTURING COMPANIES IN ENUGU STATE» ABSTRACT This research work was conducted on with special reference to the impact inventoryvaluation methods has on financial report statements of man...Continue Reading »