In carrying out the research it has been known to the researcher the reason of some of the problems faced by some medium scale industry and it was realized that the English adage that say “If you fail to plan, you plan to fail” is having effect on many of these industries with this the research was able to come up with something useful not only to the medium scale industry but also to any organization whether profit earning organization or non-profit earning organization.
In achieving this objective secondary data is made use of to obtain information. This consists of the use of Journals, Magazines, Textbooks and so many others.
It was also known that management has a very big role to play and their behavior has implication in relation budgeting and control measure.
In conclusion, some summary, findings and recommendation were induced.
1.1 BACKGROUND OF THE STUDY 1
1.2 STATEMENT OF THE PROBLEMS 3
1.3 OBJECTIVES OF THE STUDY 4
1.4 SIGNIFICANCE OF THE STUDY 5
1.5 THE SCOPE OF THE STUDY 5
1.6 LIMITATIONS OF THE STUDY 6
1.7 DEFINITIONS OF TERMS 7
REFERENCES 10
2.0 INTRODUCTION 11
2.1 MEANING OF BUDGET 11
2.2 PRINCIPLES OF BUDGETING 13
2.3 FORMS OF BUDGET 16
2.4 TYPES OF BUDGET 20
2.5 RATIONALE FOR BUDGETING 26
2.6 BUDGETING CONTROL 28
2.7 RELATIONSHIP BETWEEN BUDGETS AND BUDGETARY CONTROL 29
2.8 TECHNIQUES OF BUDGETARY CONTROL 30
2.9 THE RELEVANCE OF BUDGETARY SYSTEM TO MEDIUM SCALE INDUSTRIES 3I
REFERENCES 33
3.0 RESEARCH DESIGN AND METHODOLOGY
3.1 SOURCES OF DATA COLLECTION 34
3.2 LOCATION OF DATA 36
3.3 METHOD OF INVESTIGATION 37
REFERENCE 38
4.0 SUMMARY OF FINDINGS 39
CONCLUSION AND RECOMMENDATION
5.1 CONCLUSION 40
5.2 RECOMMENDATION 41
BIBLIOGRAPHY 43
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.
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.
The purpose of the study therefore is to reveal the effectiveness in the performance reports using different budgetary system.
The aims of this study are to evaluation and assess the budgetary system as operated in the medium scale in the medium scale industries.
To know whether the system of budgeting in this industry at a particular period is determined by the management theoretically in cognizance of existing economic conditions.
To reveal the importance of taking proper consideration of both controllable and non-controllable factors in the budgetary system to be adopted at any point in time by a medium scale industry.
To be able to suggest suitable system that can be adopted under different economic conditions.
This project aims at improving the knowledge of budgetary system in medium scale industries as well as students of finance, Accountancy, Business administration and management, researchers on the fields of other people who are interested in budgetary system.
This study will be of immense important to medium scale industries as manufacturers generally as it will assist them and companies being studies in particular to know the economic importance of the proper budgetary system as a major determination of the evaluation of their performance.
However, in the course of this research, the researcher some of which are encountered some difficulties:
The research was carried out at a period the was in session, when the researchers was going for lectures. Hence, it hurts the researcher’s work to a considerably short time. Un stable economic condition of the country, which led to financial inadequacy for the research work.
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