NEED FOR EFFICIENCY IN PURCHASING BUDGET IN A MANUFACTURING COMPANY
ABSTRACT
This study give in suitable detail on “the need for efficiency in purchasing budget”. It is obvious that most organisation are effected with the problem of budgetary control.
Chapter one entails the significance and objective of the study. It also states some of the problems which the researcher seeks to find solution on. The definition of terms is also stated which will enable us understand some of the demonology that will be used in this research work.
Chapter two gives details on the review of various literatures and gives insight on the meaning of budgetary control and its profitability.
Chapter three and four emphasises on the population and sample size and sample technique, and its presentation and analysis of data. A test of hypothesis was also stated to know the necessary findings, in the course of this project work.
Finally, suggestions are made on how best to use budgetary purchase in a manufacturing company to achieving profitability and maximizing of output respectively which gives the researcher a strong m believe of the importance of purchase budget in a manufacturing company or an organization.
CHAPTER ONE
1.0 INTRODUCTION
This chapter states the significance and objective of the study. It also states some of the problems which the researcher seek to find solutions.
1.1 BACKGROUND OF THE STUDY
Budgeting the development and execution of fiscal Acton is a major public and private resources allocation processes both (government and private). It is the process of allocating resources to meet demands, as well as converting rhetoric, to reality a process of introducing change. That process should link the past, present and future in orderly and ordered way. However, the importance of budgeting cannot be over emphasised. It is a device, intended to provide greater effectiveness in achieving organisational efficiency. to be effective however, the functional aspect must out weigh the dysfunctional aspect. In organizations, the problem of not accurately according for the expenditure of funds, leads to another important aspect or side of the con are known as “Budgetary control”. Emphatically, the survival of an organizational (both public and private, profit or non-profit) relies heavily on effective budgetary control. Various control techniques and tools have proffered by authorised in the fields they are viz:
i. Budget implementation and monitoring committee
ii. Supplementary estimates
iii. Auditing of accounts
More so, it is a known fact that budgeting is a plan Budgeting is about planning or more accurately a planning process. It is a process in which the objectives policies and policy measures. Finding requirement and sources and allocation of funds stated in the budget and determined. It can be attributed as livelihood of an organization. The problem of budgeting doe not lie in its formation but it lies in its effective implementation, this aspect has accounted for the liquidation of most organization.
Sincerely speaking, reflecting the importance of effective budgetary control system is likened to a landlord building a house without going it, its requisite foundation. A practical example notable is the report made on the cable news network (CNN) kin the year 2002 to be precise. The programme was based on entrepreneurs education. The entrepreneur that accounted for the highest amount of profit that year in the United states of America (USA) was called upon to make speech as regard to his success (the entrepreneur halls faces to the precise).
The major content he enumerated are as follows:
i. Planning
ii. Projecting of what the next year revenue and expenditure will look like (budgeting).
iii. Periodic review of what was projected
iv. Workers welfare adequately protected.
The first three, planning, projecting what the next years revenue and expenditure would look like and periodic revenues of what projected for (Budgetary controlling purchase) are what are important for the topic under review.
In summary, budgetary control is a potent look in winning he ever increasing business corporate warfare and also a prior in which the success of an organization revolves. This study will therefore focus on how far budgeting control has impacted on the profit projections of the Rokanna industries Plc.
