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BUDGETING AS AN IMPORTANT INSTRUMENT IN MANAGEMENT DECISION MAKING

ABSTRACT

This project is concerned with budgeting as important instrument in management decision making. It sought to establish the extent to which budgeting in employed in decision making. Through medium of questionnaires and interview, data was collected from various organisation. An analysis was carried out using the statistical method of chisquare. From the analysis, it was revealed that budgeting is an important decision making instrument in an organisation and that budgeting dose not have a positive relationship with the objective and goal of an organisation unless the management of any organisation make a realistic and alienable decision. From the research efforts, it is obvious that more emphasis should be placed on budgeting to enhance more effective operation of various organisations in Nigeria.

CHAPTER ONE

1.0 Introduction

The chartered institute of management accountant CIMA defined budget as plan qualified in monetary term prepared and approved prior to a defined period of time, usually showing planning income to be generated or expenditure to be incurred during that period and capital to be employed to attain a given objectives.

Management decision making is all pervasive activity taking place at every level in the organisation covering short term and long term decision.

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Description

TABLE OF CONTENTS

Certification. iii

Dedication. iv

Acknowledgement v

Table of Contents. vii

Abstract ix

List of Tables. x

CHAPTER ONE. 1

1.0 Introduction. 1

1.1 Statement of the Problem.. 4

1.2 Objective of Study. 5

1.3 Scope of Study. 5

1.4 Hypothesis. 6

1.6 Significance of the Study. 6

1.6 Limitation of the Study. 7

1.7 Definition of Terms. 7

1.8 Plan of the Study. 8

CHAPTER TWO.. 10

2.0 Literature Review. 10

2.1 Definition of Budget10

2.2 Characteristics of Budget12

2.3 Purpose of Budget12

2.4 Benefits of Budget12

2.5 Problems of Budget13

2.6 Types of Budgets. 14

2.7 Prerequisites for Effective Budgeting. 17

2.8 Steps and Consideration involved in Preparing a Good Budget19

2.9 Preparation of Departmental Activities. 21

2.10 Relationship between Planning and Controlling. 22

2.11 Budgeting Instrument for Management Decision. 2

 

2.12 Purpose and Timing of Budgetary Control2

CHAPTER THREE. 2

3.0 Research Methodology. 28

3.1 Sources of Data Collection. 29

3.2 Target Populations. 30

3.3 Sample Size. 30

3.4 Sampling Procedure. 30

3.5 Measurement Techniques. 31

3.6 Limitation of Study. 31

3.7 Analytical Tools. 32

CHAPTER FOUR. 34

4.0 Presentation and Analysis of Data. 34

4.1 Analysis of Administered Questionnaire. 34

4.2 Testing of Hypothesis. 40

CHAPTER FIVE. 45

5.0 Summary, Findings, Conclusion and Recommendation. 45

5.1 Summary of Findings. 45

5.1 Conclusion. 46

5.2 Recommendation. 47

5.3 Areas of Further Studies. 48

Bibliography. 49

Appendix. 50

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