Every organization activity must have a specific objective
Objectives are meant to be achieved at the completion of specified activities within a defined period of time there, normally exist a time lapses between when are organization standing a set of activities to achieve an objective and when the objective is to be achieved. This gap or time lapse could be filled by planned activities thus the achievement of any organizational objectives involves planning. Planning involve therefore be applied these are planning and budgeting.
The chapter highlights the statement of problems the objective of the study, the historical.
Background of the study, the historical background of the study, it further explains the scope of the study significance of the study and definitions of some budgeting terms.
1.1 BACKGROUND O FTHE STUDY
The idea of budgeting started on England on the year 1215. Before this time, the king of England has the power to compel people to pay some money before going into, military service. One of such King Henry iii.
The money paid becomes a good source of income and the kings used this money in the way they liked. This was a form of taxation which the people did not like. The commoners of England raised against king john. The result of the uprising led to the adoption of the Magna Cata of 1215 which forced the monthly to consult the people before taxes were collected. It became necessary also that the king must consult the people and submit his financial requests annually to parliament. In that request he must given an account of how he spent the money the previous year, the slogan No taxation without representation arose on England. In France, the revolution of 1789 was as a result of the struggle between the monarchy and mobility over which group was to control tax revenue collected by the enforcement officers.
In the united state, Alexander Hamilton wanted the United States treasury to control the expenditure of public fund while Thomas Jeffesson won.
1.2 STATEMENT OF THE PROBLEM
The budgeting as an aid to management decisions can not be overemphasized especially where complex and critical planning and control of expenditures involving the commitment of capital is concerned. Business enterprise are increasing award of the need of capital budgeting in management decision making and control of available resource because of the danger of business been liquidated if not properly managed and controlled by these entrusted. However, in recent times many individual and group has developed interest in setting aid to management of their own, and many of this business organization has good patronage on their products in the patronage of products the company cash accounts is always at crisis level. At the end of the day no company’s member over know whether enough cash would be available the next day to meet required expenditure.
Again, department were uncoordinated, and it was uncommon these companies to find that one department was pursuing a course that conflicted with the course pursed by another department. Above all employees morals was very low, and turnover was high, employees complained bitterly that when job is well done, nobody ever knows about it.
Indeed, outwardly many companies gave every appearance of being well-managed, smoothly operating organization. But a careful looks within, however disclosed that day-to-day operation were far from smooth in Nigeria Aid to management enterprise and often approached choose.