IMPACT OF BUDGETING, PLANNING AND CONTROL ON THE PROFITABILITY OF A MANUFACTURING COMPANY
1.1. Background of the Study
For any organization to operate meaningfully there has to be clear direction of where it is leading to or what it is aiming to achieve the standard of objectives
and a means of monitoring derivatives from standard requires. These considerations can only be met through budgeting, planning as well as controlling.
A budget has been defined as a quantitative plan usually in monetary terms for the forth coming accounting year of the ensuring period. Budgeting
planning/short term planning is the process of preparing detailed, short term (usually 1 year) plans for the function, activities and departments of the
organization thus converting the long term co-operate plan into yearly action. Budgeting services as a very important tool for planning and control increase
in productivity, in that budgeting aids planning for the future, if services as a control function through management by exception which is the assessment of
performance for the purpose of controlling. It helps in co-coordinating of the work management in order to coordinate the activities of the organization.
1.2. Statement of Problem
Generally, organization whether manufacturing or service, required good budgeting for increasing productivity. Budgeting as a tool for planning and
controlling does increase productivity. This is the problem of qualified personnel that are required for the purpose of preparation implementation and
execution of budgeting, areas of responsibility will be decided by management and also budgeting pressure is another problem. The study will therefore be
focused on whether budgeting contribute towards increasing productivity in organization or not.