Importance Of Budget And Budgetary Control

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1. INTRODUCTIONWants are numerous while resources are limited in supply but there is every tendency to waste the limited resources by human factors involved on the production of goods and services by a manufacturing company. Due to competition with various companies in the same field, only a small number of such companies that are able to produce at least possible cost will survive the growing competition in the whole market. Therefore it is important for every serious business undertaken to produce at that possible minimum cost so as to remain in the business, to be competitive and to achieve the corporate objective of profitability, stability and better performance. As such there is every need to do a realistic planning of the activities …show more content…

This has aggravated the researcher’s need to analyse the impact of budgets and budgetary control on enhancing profitability of organisations. The study will be used as a pointer on where some companies in the manufacturing sector are getting it wrong as far as managing their budgets is concerned. Thus the study will be used as a guiding tool for how best companies should effectively manage their budgets for them to attain the goal of efficiency and to be profitable in today’s complex competitive and ever dynamic environment.1. To the researcherThe research will help the researcher to gain an in-depth understanding of budgets and budgetary control. It will also help the researcher to have the ability to collect and analyse data, a situation that will help to transform her into a better analyst and to improve the researcher’s knowledge as well as to obtain an Honour’s Degree in Accounting.
2. To the IndustryThe Research will assist the manufacturing company (COTTCO), to achieve their objective that have been drafted in order to enhance profitability and the need for budgets and budgetary control measures. The Research will also help any manufacturing company in Zimbabwe to eradicate any obstacles that are imposed …show more content…

The researcher is not going to use this research design.
Descriptive research designA descriptive research design will be used as it involves observing and describing the behaviour of a subject without influencing it in any way. In this study, descriptive research design will be used to measure the profitability of the company.
Sample sizeA sample size should be a representative of population being studied. In this research, the researcher will use a sample size of 100 people to gather information using questionnaires
SOURCES OF DATAIn this study, the researcher will use primary data and secondary data.
1. Secondary dataThe researcher will make use of secondary data from those people working in manufacturing companies. This will help the researcher to answer certain research questions such as those to which need to need to understand how the budgets and budgetary control can help the company to attain the goal of efficiency and

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