BUDGETING AND BUDGETARY CONTROL AS THE METRIC FOR CORPORATE PERFORMANCE

Obi, James (2015) BUDGETING AND BUDGETARY CONTROL AS THE METRIC FOR CORPORATE PERFORMANCE. International Journal of Sustainable development, 3 (1). ISSN 2141-014x

Text BUDGETING AND BUDGETARY CONTROL AS THE METRIC FOR CORPORATE PERFORMANCE.pdf - Published Version Download (313kB)

Abstract

Budgeting and Budgetary Control is the thrust of this article. It tries to examine the practice of budgeting and budgetary control in corporate organizations and its merit as a predictor of corporate performance. Budgeting involves the setting of targets and monitoring of performance against those targets. For an organization to be successful, it must plan its financial activities well in advance through the institution of effective budgeting and budgetary control measures. . Modern business organizations are increasingly appreciating the importance of budgeting and budgetary control in the achievement of goals and objectives. Making effort to achieve operational targets and objectives without effective budgeting and budgetary control measures would be tantamount to a blind pursuit of goals. Great majority of firms are guilty of preparing initial budgets only to over-shoot the budget limits during the implementation stage due to poor control budgetary control measures. Forward-looking organizations today are determined to go the extra mile through achieving competitive dominance over their competitors and posting super profit figures. Good budgeting and budgetary control measures is the key to achieving this objective. The study advices top management of modern organizations to take budgeting and budgetary control issues seriously as no appreciable success can be achieved with haphazard budgeting and budgetary control. The methodology adopted in this article was descriptive approach involving the study of budgeting and budgetary control activities in 30 organizations selected from a number of States in the Federation. Best practices in budgeting and budgetary control in the 30 organizations were skimmed and synthesized to form the basic data for writing the article.

Actions (login required)

View Item