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Assessment Of Budgeting In The Present Nigeria Economic System In Cross River State University Of Technology
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CHAPTER ONE
INTRODUCTION
BACKGROUND OF THE STUDY
Budget and
Budgeting are concepts traceable to the Bible days, precisely the days
of Joseph in Egypt. It was reported that nothing was given out of the
treasure without a written order. History has it that Joseph budgeted
and stored grains which lasted the Egyptians throughout the seven years
of famine.
Budgets were first introduced in the 1920s as a tool to manage costs and cash flows in large industrial organizations.
Jean,
(2010), states that it was during the 1960s that companies began to use
budgets to dictate what people needed to do. In the 1970s performance
improvement was based on meeting financial targets rather than
effectiveness companies then faced problems in the 1980s and 1990s when
they were not willing to spend money on innovations in order to stay
with the rigid budgets, they were no longer concerned about how
customers were being treated, only meeting sales targets became
essential.
It is a requirement as per Serena Group of Hotels Finance
policy that each unit has got to prepare budgets from where financial
statements prepared on a monthly basis can be compared with. However
effective budgetary control has been a problem. What is forecasted
monthly is not actually met. In business organizations, budgeting are
formally associated with the advent of industrial capitalization for the
revolution of the eighteenth century, which presented a challenge for
industrial management (Jean, 2010).
However, budgeting at the early
state of its development was concerned with preparing and to permit
correct performance evaluation and consequently rewards.
Information
that management accounting control system helps managers, by monitoring
company‟s changing environmental circumstances, to compare opportunities
and threats in the market so that they can obtain added value against
competitors because it is important in facilitating the preparation of
budgets, since budgeting and accounting are closely related (Bruner,
2002).
Budgets are known to have an important role to transmit the
expectation of top management to lower levels. According to Brigham,
(1979) budgets are used to communicate top management‟s expectations to
managers and employees.
According to Lucey. (1993), it is a
quantitative expression of plan of action prepared in advance of the
period to which it relates, expressed in money terms approved prior to
the period.
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ABSRACT - [ Total Page(s): 1 ]This study was carried out to assess budgeting in the present Nigeria economic system in Cross River State University of Technology. Specifically, the study determined the role played by budgeting towards the controls of government fiscal policies, established the relationship between budgetary control and performance in Cross River State University of Technology and, ascertained the extent to which budgeting processes has aided planning for long term survival of Cross River State University of ... Continue reading---
