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              BUDGETING: A SYSTEMATIC APPROACH TO PROFIT PLANNING AND CONTROL

          (A CASE STUDY OF MOBILE TELECOMMUNICATION NETWORK NIGERIA LIMITED’ (MTN),                                                                              ENUGU STATE)

PROPOSAL

          Budgeting – A systematic approach to profit planning and control is a work that will be centered on the use of budgeting a tool for planning and control in order to maximize profit using mobile Telecommunication Network Nigeria Limited (MTN) Enugu, as a case study.

          This research will be carried out through series of oral interviews and distribution of questionnaires in the collection of data and relevant information to the employees of mobile telecommunication Network Nigeria Limited Enugu.  The data that will be collected, will be analyzed as well as interpreted by the research from the testing and proofing of hypothesis.  The researcher will also source information from secondary data which includes text books, magazines, journals etc.

          The researcher will be faced with the following constraints:

• Insufficient money to distribute as much questionnaires as possible.
• Poor response from the employees because they will be afraid of losing their job
• Insufficient time

 In order for the company to achieve their objectives, the researcher will recommend that there should be budgetary control so that workers will be aware of the objective of the organization and subordinates opinion considered in the preparation of the departmental or company’s budget estimate.  This will help in encouraging goal congruence.

 

ABSTRACT

          Budgeting – A systematic approach to profit planning and control is a work centered on the use of budgeting as a tool for planning and control for profit maximization in a mobile telecommunication network Nigeria Limited Enugu as a case study.

          The objective of the study is to show the importance of budgeting as a tool for systematic profit planning and control in the mobile telecommunication network Nigeria limited which has profit maximization as its principal objective.

          The research is also aimed at identifying the steps adopted in the formulation of annual budget of MTN Nigeria.

          Consequent upon this, the following hypothetical question were used for the study.

1. Managers use budgeting as a systematic approach to profit planning and control in attaining the goals of the business.
2. Decision making is performed in mobile telecommunication using budgeting
3. Utilization of resources is achieved with the use of budget and budgetary control

Following the investigation and analysis of data, the following findings were made

1. The organization uses budgeting in achieving the goals and objectives
2. The main objective of the organization is profit maximization
3. Efficiency and effectiveness of the organization is achieved through the use of budgeting.

From the findings, the conclusions were arrived that budgeting is very essential and indispensable tool for profit planning and control.  It helps management to be well structured in sustaining the growth and expansion of the organization.

 

TABLE OF CONTENTS

CHAPTER ONE

1.0     Introduction                                                                            1

1.1     Historical Development of the Firm                              4

1.2     Background of mobile Telecommunication                    5

          Network Nigeria Limited/Present state of Affairs

1.3     Statement of problem                                                    8

1.4     Objective of the study                                                    8

1.5     Research Question                                                                   9

1.6     Research Hypothesis                                                     10

1.7     Scope and limitation                                                      10

1.8     Significance of the study                                                         11

1.9     Definition of terms                                                                  12

CHAPTER TWO

2.0     Literature review                                                            14

2.1     Introduction                                                                            14

2.2     Definition of budget                                                       15

2.3     Types of Budget                                                            17

2.4     The Budget period                                                                   20

2.5     Administration of the Annual Budget                                     21

2.6     Stages in the Budget process                                         24

2.7     Appraisal of fixed, flexible and other budget                          43

2.8     Planning function                                                           45

2.9     Controlling function                                                      46

2.10   Budgeting control                                                          50

2.11   Variance analysis                                                           51

1. Additional Tool for Budgeting and Budgetary

control: Zero Base Budgeting (ZBB)                                       57     

CHAPTER THREE

3.0     Research Design and methodology                                58

3.1     Research design                                                             58

3.2     sampling technique                                                        58

3.3     Sampling design and population size                                      58

3.4     Sources of data                                                              60

3.5     Interview questions                      &n