BUDGETING AND BUDGETARY CONTROL ARE THE ESSENTIAL TOOLS TOWARDS SOLVING MANAGERIAL ACCOUNTING PROBLEMS IN MOST CORPORATE ORGANISATION

Abstract

The budgeting and budgetary controls are the crucial part of management control method of most corporate organisation. This process encourages managers to plan, consider the stakeholders involved, provides information for improved decision making, increases and enhances communication and coordination among departments, and for evaluation. This study evaluates the influence of budgeting and budgetary control on the managerial accounting problems in most corporate organisation, using manufacturing company in Nigeria (Nestle, breweries and Coca Nigeria Plc) as a case study. Since wants are plenty while resources are limited, every organisation tends to find means by which it can get what it wants with the limited resources at its disposal. Therefore, firms seek to adopt the concept of budgeting and budgetary control to satisfy their needs at the least possible cost and at the same time fulfil their stewardship obligations to the numerous stakeholders. A descriptive research design was adopted with data gathered through questionnaire administered to respondents. Non-parametric tool of chi square was employed to analyse the data. Hypotheses were tested and analysed on a 5% level of significance, and it was revealed that budgeting is a useful tool that guides firms to evaluate whether their goals and objectives are actualised. Considering the changing environment in which firms now operate, it can be concluded that budget, which is a continuous management activity, should adapt to changes in the dynamic business environment