An Assessment of Factors Responsible For Budget Failure in Nigeria

CHAPTER ONE
INTRODUCTION
1.1 Background of the Study
Budgeting is one of the ways of controlling cost in manufacturing organizations. Cost
control is a systematic review of the resources a company uses to achieve its primary objective of
profitability; therefore, it can also be referred to as cost management. For cost to remain within
reasons, it is desirable to compare expenses against industry benchmark which is a good
indicator of competitive standing (Olagunju, Imeokparia and Afolabi 2014). Performance
measurement is achieved through the comparison of various indices (Arnold, 2017). However, it
is a clear fact that enterprises are in business to make profit. The worth of the firm at the end of
the year is determined through the financial statement prepared by the management. Such
financial statements show a combined summary of the effect of social constraints, management
policy decisions and risk return trade-offs characteristics of the firm (Ogunjimi, 2010).
Budgeting is a key policy instrument for public management and management of the firm; it is a
familiar activity to many as it is practiced in our private lives as well as in businesses,
government and voluntary groups (Lambe, Lawal and Okoli, 2015). The use of budgets in
government circle long preceded its application in enterprises or the business sector. In the stable
economic environment of the period before the world wars, few large companies particularly in
the U.S.A and U.K used budgets for variety of purposes. The use of budgets created its own
conflicts, as some pioneer companies reported budgeting as a significant tool to management,
while others reported same as having an ill or even a negative effect on efficiency and
productivity. However, the world depression of the 1920s and its attendant negative effects that
created “business worries and troubles” made the use of budgeting imperative in order to plan
the overall growth of an economy and the enterprise.
Budgeting and Planning is defined as a comprehensive and coordinated plan which is
packaged by the management of an organization, and expressed in financial terms for the
operations and resources of an enterprise for some specific period in the future (Lambe, 2012)
Budgetary control is defined as the establishment of departmental budgets relating the
responsibilities of the executive to the requirement of a policy (Pandeyi, 2008).
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1.2 Statement of the Problem
Any business organisation solely aims at making profit and most business owners believe
that the best way to make profit is to increase sales which also brings up another confusing and
difficult problem. In order to increase sales, there must be a corresponding increase in cost
because of the increased amount of work involved. These increased costs are what need to be
curtailed. Since the emergence of stewardship accounting as an emerging role in which most
business organizations are operated, there has been need for management to minimise input,
utilise available resources and maximise profit in the interest of the stakeholders of business
organisation through budgetary control techniques.
Before the adoption of budgetary control system by manufacturing companies, a lot of
arguments and criticisms have been made against the efficacy of budgetary control techniques.
The problem this study aimed to address includes whether there is a significant impact of
budgetary techniques on the profitability of manufacturing firms in Nigeria; establishment of
whether or not there is a relationship between planned and actual budget and whether or not there
is a relationship between cost reduction and quality of products.
1.3 Objective of the Study

The basic objective of the study is to examine an assessment of factor that are responsible
for budget failure in Nigeria. The specific objectives shall be:
(i) to establish whether or not budgetary control have significant impact on the financial
performance of manufacturing firms in Nigeria
(ii) to determine the relationship between budget and budgetary control and the profitability
of a manufacturing company
1.4 Research Questions

The following research questions are relevant to the study
(i) Does budgetary control have significant impact on the financial performance of
manufacturing firms in Nigeria?
(ii) Is there any relationship between budget and budgetary control and the profitability of a
manufacturing company?
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1.5 Research Hypothesis
The following null hypotheses were formulated for the study
H01: Budgetary control has no significant impact on the financial performance of
manufacturing firms in Nigeria
H02: There is no relationship between budget and budgetary control and the profitability of a
manufacturing company
1.6 Scope of the Study

This study investigate an assessment of factor that are responsible for budget failure in
Nigeria. The scope covers Nigeria Bottling Company Plc, Ibadan.
1.7 Limitation of the Study

In every human activities there is bound to be some hindrances that makes his aim and
objectives difficult if not totally impossible to achieve. Some of the following are the limiting
factors that bring hindrances to this research work.
Attitude of the organization towards the research: Most of the staff and the management
consulted to render useful information for the successful implementation of the research refused
to supply authentic information and this made the problem more compounded.
Lack of disclosure of fact and accuracy of data:- Some of the management interviewed
about the subject matter decline to give out information, they said there are some information
that are confidential to the organization and their customer. To reach accuracy of data collected
is another limitation factor as well.
Another factor that limited the scope of this study is finance. The importance of finance
in conducting research work cannot be over emphasized. The current economic hardship
constituted financial difficult that greatly affected the study.
1.8 Significance of the Study

This research work will highlight the inevitable impact of budget and budgetary control
as a tool for enhanced performances in manufacturing companies in Nigeria. It will help readers
to know whether there is a significant relationship between the use of budgetary control and
profitability of organization. The study will be useful to the management and staff of Nigeria
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Bottling Company in determining whether budget and budgetary control enhanced organization
financial performance.
Moreover, other manufacturing companies, the public, students and researchers will also
find the study useful to them.
1.9 Definition of Terms

Cost Control: Cost control is a systematic review of the resources a company uses to achieve its
primary objective of profitability; therefore, it can also be referred to as cost management.
Budgeting: Traditionally, budgeting has always been viewed as a way of limiting expenditure,
hence a great part of management’s time is devoted to the allocation of fund. However, empirical
evidences in today’s globalized world, suggest that budgeting goes beyond merely showing
expected revenue and project expenditure.
Flexible Budget: Flexible budget is any type of budget which recognizes the difference in
behavior between fixed and variable cost relative to fluctuation in output and turnover, and it is
designed to change appropriately with such fluctuations.
Sales Budget: A good sales budget allows management enough financial caution for other
expenditure, while at the same time allowing for a good study of the pattern of sales revenue
receipts which enable the organization draw up its cash budget for the purpose of liquidity and
capital projects.
Budgetary Control: The Institute of Cost and Management Accountants (2009) defines
budgetary control as the establishment of budget relating the responsibility of executives to the
requirement of a policy and the continuous comparison of actual with budgeted result, either to
be secured by individual action the objective of the policy or to provide a basis for its revision.
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CHAPTER TWO
REVIEW OF RELATED LITERATURE
2.1 Introduction
A number of controllable and uncontrollable factors also influence an organization and
these factors must be well appraised in drawing up a budget. Due to the existence of
uncontrollable factors, which are usually not within the purview of management, provisions must
be made in the budget to allow for diverse results (whether favorable and adverse factors),
depending on the state of the economy at any given time, and it is this provision that inputs
flexibility in budgeting. According to Joseph Baggot (2016), flexible budget is any type of
budget which recognizes the difference in behavior between fixed and variable cost relative to
fluctuation in output and turnover, and it is designed to change appropriately with such
fluctuations. Whereas a fixed budget according to ICMA (2009) is a budget which is designated
to remain unchanged irrespective of the output or turnover actually attained.
There are basically two very common types of budgets in every organization, whether
(private of public) and these include the capital and cash budgets. This does not in any way
negate the importance of other forms of budgets, as every organization has its own way of
classifying budgets, such as (the preparations of) sales budget, production budget, general
budgets, administrative budget, research and development budgets among others. These budgets
could be short term, intermediate or long term. The capital budget indicate the amount of funds
that an organization or governmental agency will devote to capital project for a specific period of
time. It details the projects assets and activities in which an organization will invest these outlays
and it answers several fundamental questions such as: What are the long-term asset needs of an
organization? What capital funds will an organization required in periods/years ahead in other to
remain a going concern. The cash budget on the other hand is a detailed financial forecast
presented in a schedule showing cash flows (inflows and outflow) for an organization, over a
specific period of time. Batty (2008) opined that a cash budget is the estimation of cash receipts
and payment for a future plan after due consideration has been given to expected condition and
the overall budget plan. The cash budget rather than being a budget in itself is derived from other
budgets. It gives the financial highlight and takes into account the timing of receipts and
payments. The important aspect of cash budgets cannot be overemphasized as it influences the
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liquidity position of an organization. A decision not to plan cash inflow and outflow adequately
could create structural rigidities and limited choice of financial sources, as well as high interest
rate or opportunity cost of money. The essence of any budget is to control expenditure and
enable management carry out projects in order of importance; hence the budgeting process is
seen as a way of improving management efficiency and performance in operations.
Similarly, the foundation of a firm’s financial plan is a sales forecast or budget. The sales
budget provides the source of information and guidance for drawing up other budgets. This is
because the sales revenue shows how well a firm is performing or is expected to perform both in
the present and in the future. A good sales budget allows management enough financial caution
for other expenditure, while at the same time allowing for a good study of the pattern of sales
revenue receipts which enable the organization draw up its cash budget for the purpose of
liquidity and capital projects.
In drawing up a financial plan, management must set a standard for comparing actual
performance with what was budgeted, thus creating a basis for controlling performance both in
terms of production and cost incurred. This control is primarily referred to as budgetary control;
that is the use of budget to control firms’ activities. The Institute of Cost and Management
Accountants (2009) defines budgetary control as the establishment of budget relating the
responsibility of executives to the requirement of a policy and the continuous comparison of
actual with budgeted result, either to be secured by individual action the objective of the policy
or to provide a basis for its revision. It is essential to compare at regular intervals, actual
performance with budgeted results or standard set to ensure that deviations from planned results
are kept down to a minimum and that the necessary corrective actions are taken as soon as
possible after investigation of such deviations have been undertaken. In some circumstances, it
may be necessary to revise the target or goals set, but this should only occur in exceptional
circumstances.
The basic concept of budgeting and budgetary control however entails the establishment
of a goal by management that will guide it in drawing up its planned activities, quantified in
financial terms as a budget. It also involves the comparison of actual performance with the
established standard or goal, and if any deviations occur, corrective actions are taken. Budgeting
is closely connected with control and the exercise of control in the organization with the help of
regulatory or policy framework is known as budgetary control. Consequently, the process of
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budgetary control involves; the preparation of various budgets, continuous comparison of actual
performance with budgetary performance and the revision of budgets in the light of changed
circumstances.
Budgetary control (if not made to be excessively rigid), is an important device for making
any organization more efficient on all fronts, and it serves as an important tool for controlling
costs and achieving the overall objectives. In the light of the above, it is important to state that
planning and control is the essence of profit planning in any business organization and the
budgeting system provides an integrated picture of the firm’s operation as a whole. All
companies require for their successful operation and continuity in business, effective financial
planning and control. Budget represents planning and control devices that require management to
anticipate changes and adopt them. Business operations in today’s economic environment are
complex and are subject to heavy competitive pressures, and as such different kinds of changes
take place. The state of the fluctuations in the economy in turn affects different industries in a
number of ways.
2.2 Conceptual Framework

2.2.1 Budgeting Process
Jones and Pendlebury (2013), gives us some insight into the beginning of the budgeting
cycle when they present a "Timetable for preparation of detailed revenue budget and capital
programme" for a Local Authority. Jones and Pendlebury (2013) further showed that the process
starts in June in the year preceding the budget period with the draft budget manual being sent to
Finance Officers, who will discuss this draft with their departmental staff (with a view to
adoption or amendment). The budgetary planning phase is completed in March (ready for an
April start) when the printed budget book is published and the approved estimates are put into
the financial control system.
Colville (2009) presented budgeting for a Police Authority in the UK. The mobilisation
and allocation of financial resources is undertaken through the budget and budgeting processes
(Obioma, 2004).
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2.2.2 Budget Period
Belkaoni (2011), the budget period is the period for which a set of budget is prepared.
The budget period is of one year duration and will be designed to coincide with the
organization’s financial or fiscal year. If we are with a project, then the budget will clearly be
linked to that project. A month project will have a budget covering the whole project and will be
three months budget (Belkaoni, 2011). Most organizations will divide their budget period into
calendar months (or periods), whereas others have thirteen period year call of an equal four week
period. In certain situations, the budget period will be analysed according to some particular
features of the work in that situation.
2.2.3 Administration of Budget in Manufacturing Companies

Budget Administration can be described as the whole process of budget supervision in
order to ensure that the set goals and the objectives of the firm are achieved as planned
(Davidson: 2009). The budgetary process in manufacturing companies usually commences with
a strategic session held at as external venue involving all management staff.
According to Lucey (2010), budgeting itself is the process of estimating the needs of the
firm for a future period based on past experience and future needs. Budget monitoring or
budgetary control is a process of comparing actual results with budgets to serve as a basis for
performance evaluation and revision of budgets.
2.2.4 Budgetary Control

When there is a difference between the actual amount incurred or realized, and the
corresponding budgeted (forecasted) figure, there is budget variance (Garisson, et al., 2003).
Herath and Indriani (2007) investigated on the “roles of Budgetary Control System (BCS) as a
component of the Management Control System (MCS) in creating and sustaining competitive
advantage” and came up with a positive conclusion. They concluded that though Budgetary
Control System could play a leading role in establishing an efficient Management Control
System for creating a sustainable competitive advantage, budgeting will not function in isolation.
“Instead, it can be used more effectively by strategically joining it with emerging strategic
oriented knowledge enterprise” (Herath and Indriani: 2007). Hirsch (1994) summarizes the
causality of variance. Control is the process of ensuring that a firm’s activities conform to its
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plan and that its objectives are achieved (Drury, 2016). Friedlob and Plewa (2016), put it clear
that favourable budget variances are “generally signs of efficient, effective cost management and
increases in net income”.
Budgetary control therefore, is planning in advance various functions of business so that
the business as a whole can be controlled. Ideally, budgetary control is operated with a system of
standard costing because both systems are interrelated (Straats, 2008). Budgetary control relates
expenditure to the person who incurs the expenditure so that the actual expenses can be
compared with budget expense. Budget relates to a forecast amount of money to be received or
incurred in respect of a country, council, district, company, division, local government or an
operating unit, while standards relate to the cost price or sales value of a unit of product or
services (Hammond, 2015). According to Adeniyi (2008) budgetary control is part of overall
system of responsibility accounting within an organisation. It is a system of accounting in which
cost and revenues are analysed in accordance with areas of personal responsibilities so that the
performance of the budget holders can be monitored in financial terms.
According to Arora (2003), the objectives of budgetary control can be summarised under
the following:
• To communicate expectations to all concerned with the management of the firm so that
they are understood, supported and implemented
• To provide a detailed plan of action for reducing uncertainty and for the proper direction
of individual and group efforts to achieve goals
• To coordinate the activities and efforts in such a way that the use of resources is
maximized
• To provide a means of measuring and controlling the performance of individuals and
units and to supply information on the basis of which the necessary corrective action can
be taken
• To state the firms goals in clear, formal terms to avoid confusion and to facilitate their
attainability
According to Lucey (2016), control is the ability which measures deviations from
planned performance and provides information upon which corrective action can be taken either
to alter future performance so as to conform to the original plan or to modify the original plan.
Abel Aig Asein (2002) added that budget is a control mechanism as it entails setting up targets to
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be accomplished in a given period of time backed by the cost implementations. Williamson
(2009), a budget is a statement setting out the monetary, numerical or non quantitative aspects of
an organisation's plans for the coming week or month or year. Budgetary control is the analysis
of what happened when those plans came to be put into practice, and what the organisation did or
did not do to correct for any variations from these plans. According to Ackoff as quoted by Abel,
the following are budgetary control processes:
• Predicting the outcome of decisions in the term of performance measures
• Collecting information on actual performance
• Comparing actual results with predicted performance
• When a decision is shown to have been deficient, correcting the procedure that produced
it and correcting its consequences where possible.
Budgetary control is a system of controlling costs which includes the preparation of
budgets. Pandey (2002) views budgetary control as a system of controlling costs which includes
the preparation of budgets. Budgeting is thus only a part of the budgetary control. Control is
achieved through continuous reporting of actual progress and expenditures relative to plans
(Shim and Siegel: 1994). The aim of budgetary control is to provide a formal basis for
monitoring the progress of the organisation as a whole and of its component parts towards
achievement of the objectives specified in budgets (Lucey, 1996).
Emmanuel et al. (2010) also state that four conditions must be satisfied before any
process can be said to be controlled. Firstly, objectives for the process being controlled must
exist. Without an aim or purpose control has no meaning. Secondly, the output of the process
must be measurable in terms of the dimensions defined by the objectives. Thirdly, a predictive
model of the process being controlled is required so that causes for non attainment can be
identified and proposed corrective actions evaluated. Finally, there must be a capability for
taking action so deviations from objectives can be reduced. According to Merchant (1985)
provides empirical evidence that managers perform better when their superiors accepted a
reasonable explanation for an unfavourable budget variance. McWatters (2008) also states that
the unfavourable variances might not be seen to be harmful to the company when managers are
required to provide justifications. Koontz and Weihrich (1998); Wildavsky (1975) put it clear
that measuring actual performance against planned performance from time to time and taking
remedial action on factors causing unfavourable deviations from the plan are important for
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maximizing the results anticipated through planning. Aborode (2005) puts it clear that rather than
seeing budgets as a means of improving performance and achieving corporate objectives, it
should be regarded as witch-hunting exercise.
As enumerated earlier, an implied meaning of budgets and the setting of budget targets is
the fact it is an instrument for control purposes. Much as planning alone does not necessarily
bring into effect a proposed course of action, so also is budgetary propositions which must have
effective control for it to remain relevant. Budgetary control is principally geared towards
achieving in a functional and effective manner, the proposed course of actions quantified in the
budgetary framework.
According to Brown and Howard (2002) budgetary control can be viewed as a system of
controlling cost which include the preparation of budget coordinating the department and
establishing responsibility, comparing actual performance with that budgeted and acting upon
results to achieve maximum profitability. In their own views, the Institute of Cost and
Management Accountants (2010) defined it as “The establishment of budget relating the
responsibility of executives to the requirement of a policy and the continuous comparison of
actual with the budgeted result either to secure by individual action, the objective of that policy
or to provide a basis for its revision”. From the above positions, it simply means that to achieve
(budgetary) control, actual performance must be measured against the budgeted target, at regular
intervals so that performing can be properly assessed and evaluated. Management must first of
all establish goals and standards that will guide it, draw up its target, against which actual
performance can then be compared with established standard and if any deviation occurs,
corrective action can subsequently be taken (after investigation into causes), while utilizing the
identified causes as inputs for corrective measure for future planning. Hand (2006) in his
position, identified three basic stages in budgetary control processes and they include the
following:
• Setting of pre-determined standard.
• Measurement of actual performance against predetermined standards.
Corrective action if necessary to bring the actual performances in line with the
predetermined standard. The concept of budgetary control cannot be divorced from that of an
executive responsibility. Furthermore, the objective of budgetary control is to enable
management to conduct business in the most efficient manner. Scott (2000) also lends credence
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to this fact when he posited that budgetary control is more than an administrative technique
which aims to ensure that management functions are carried out in a well organize and co-
ordinated fashion. According to him, budgetary control rather aims at straightening
communication within an organization in other to ensure that budgetary provisions remain goal
oriented.
2.2.5 Budgetary Control and Management

McLaney and Atrill (2009) argue that the value of the budget as a plan of what is to
happen and as a standard against which actual performance will be measured, depends largely on
whether and how skilfully this negotiation is conducted. Chenhall (2003), structure has been
measured in terms of decentralization of authority, structuring of activities, interdependence and
organic-mechanistic orientations (Chenhall: 2003). Collins, Munter and Finn (1987) discovered
that subordinates use different game play patterns of coping with their superior’s budgetary
leadership style and interpersonal stress associated with budgeting. Rockness (2007) found that
difficult budgets, a predictable reward structure, and formal feedback on results resulted in better
performance and a higher level of employee satisfaction, while Brownell and McInnes (2006)
discovered that participation and performance, although positively related, cannot be explained
using the expectancy theory as a framework since the path between them through motivation
explained very little about their relationship. According to (Subramaniam and Ashkanasy: 2001)
budgetary participation refers to the involvement of managers in the budgetary process and their
influence over the setting of budgetary targets. Garrison and Noreen (2000) suggested a different
definition of management control as those steps taken by management that attempt to increase
the likelihood that the objectives set down at the planning stage are attained and to ensure that all
parts of the organisation function in a manner consistent with organisational policies. It is the
‘out-of-line’ items that need immediate managerial attention to determine causes and to take
corrective action (Welsch, Hilton, and Gordon: 1988).
They added that the process of participation may bring about a greater commitment by
lower level managers to carry out the budget plan and ‘meet the budget’. From a managerial
point of view, the effort to develop, implement and operate a cost system is justifiable only when
the cost information provides effective support for decision making (Johnson and Kaplan: 1987,
and Krieger: 1997). Merchant and Manzoni (2009) found evidence that the vast majority of
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profit centres’ budgets that they investigated are challenging, but with management team’s
consistent effort, very likely to be achieved. Merchant (1981) discovered that larger, more
diverse, decentralised firms tend to use budgeting in an administrative manner with greater
importance placed on achieving budget plans, greater middle management participation in
budget related activities, more formal patterns of communication, and use of more sophisticated
budgeting support.
According to (Pyhrr: 2009), to enable the top management to realise and adhere to its set
of objectives, they must:
 Understand the nature and characteristics of budgeting
 Be willing to devote efforts required to make it operative
 Support the programme in all its ramifications
 Be convinced that this particular approach to managing is preferable for their situation
 View the result of planning process as performance commitments
Hope and Fraser (2003), the conditions are more uncertain and the environment is more
competitive today than before, consequently budgets no longer meet executives’ need of
information in order to manage under these circumstances. Daum (2002), companies that want to
survive in today’s competitive circumstances need continuous improvement and flexibility.
‘Change-leaders’, leaders that are always open to changes and react fast to shifting conditions in
the market are desirable. Poon (2001) states that budgetary participation provides a setting in
which managers can exchange information and ideas to make budgetary planning and control
more effective. Shields and Young (1993) give evidence that the larger the differences in
information levels between subordinates and superiors, the higher the probability that
subordinates participate in the budgeting process. Daum (2002), a budget is out of date when it is
used and it does not provide helpful information for managers to make decisions. He added that
obsolete guidelines prevent managers from taking actions. According to (Magner, et al., 1995;
Nouris and Parker: 1998, Shields and Shields: 1998), budget participation can mean that
subordinates communicate their information to their superiors, resulting in better budgets and
decision-making.
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2.3 Theoretical Framework
2.3.1 The Theory of Budgeting
Hirst (1987) explains that an effective budgetary control solves an organization’s need to
plan and consider how to confront future potential risks and opportunities by establishing an
efficient system of control. Shields and Young (1993) define the theory of budgeting as a
detector of variances between organizational objectives and performance. Budgets are
considered to be the core element of an efficient control process and consequently vital part to
the umbrella concept of an effective budgetary control.
2.3.2 Accounting Theory

Kaplan and Norton (1996) assert that the accounting theory is aimed towards provision of
a coherent set of logical principles that form the general frame of reference for the evaluation and
development of sound accounting practices and policy development. Otley and Pollanen (2000)
exemplifies that the purpose in developing a theory of accounting is to establish Standard for
judging the acceptability of accounting methods. Procedures that meet the Standard should be
employed in practice of accounting. Theory has assisted in making predictions of the likely
outcome of budget action in a given set of circumstance and effect of any change in
circumstances.
Accounting theory has developed models in which Standard can be set. Management
accounting theory also provides several yardsticks to be used for control. That is variance
analysis. Since budget is an instrument of plan. It provides a framework of given feed back to the
management on the implementation of budget. When implementing the accounting theory
historical data is instrumental since this data serve as an input for making identification,
allocation and revenue maximization has provide a basic insight and blue print in budget and
control in organization. According to Hopwood (1976), the matching concept in accounting also
plays a role as reference issue in budget analysis.
2.3.3 Budgetary Control Theory

According to this theory, a good budgetary control system must be able to address the
efficiency and effectiveness of the organization’s expenditure. A good budget is determined by
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the level of income of the organization (Robinson, 2009). Sawhill and Williamson (2001) argue
that budgets can be used an indicator of the performance of the ruling government. It is a
statement of whether they are competent in administering the organization and the national
resources. It is therefore essential for the organization to understand its budgeting system and
give priority to urgent matters that require attention to its control tools. In order to find out the
relationship between the budgeting system and the organizational performance, it is important
for the firm to determine the patterns of the expenditure of the organization and its performance
(Phyrr, 1970).
2.4 Empirical Framework

2.4.1 Responsibility Accounting
Sawabe (2015) studied Value-driven responsibility accounting - dynamic tensions
generated by competing values embedded in the management control system in the context a
Japanese manufacturing company and a consulting arm offshoot of the company’s planning
office. Using Simons’ levers of control (LOC) framework, the researcher adopted a case study
method to investigate the way in which core values affect the design and use of a responsibility
accounting system, which in turn shape the challenges which operational managers face, and
how such managers fulfill their responsibilities by delivering financial results while at the same
time being faithful to the organization’s core values. The findings of the study suggested avenues
for further research regarding the sources and nature of dynamic tensions generated and managed
by the MCS.
Fowzia (2008) examined the use of responsibility accounting to measure the satisfaction
levels of Service organizations in Bangladesh. The objectives of the study were to conceptualize
the types of responsibility accounting system and responsibility accounting model, to assess the
application level of different types of responsibility accounting system in various types of service
organizations in Bangladesh, to examine whether the satisfaction level of the elements of
responsibility accounting model regarding different types of service organizations in Bangladesh
were same or not and to find out the influential elements on the overall satisfaction of
responsibility accounting system in service organizations in Bangladesh. The findings indicate
that satisfaction of overall responsibility accounting system is influenced by satisfaction of
assignment of responsibility, performance measurement techniques and reward system.
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Nawaiseh et al. (2014) carried out an empirical assessment of measuring the extent of
implementing responsibility accounting rudiments in Jordanian Industrial Companies listed at
Amman Stock Exchange. The objectives of the study were to identify the extent the Jordanian
Industrial Companies fully implement responsibility accounting, to disclose the obstacles that
may abstain of full implementation of responsibility accounting rudiments. The study
recommended the necessity for public shareholding companies to give generally more interest to
managerial accounting, specifically for responsibility accounting by recruiting professionals in
accounting departments, particularly, CMAs.
Nyakuwanika et al. (2012) analyzed the effective responsibility accounting system
strategies in the Zimbabwean Health Sector 2003-2011. The study set out to come up with
strategies to ensure effective responsibility accounting system in the Ministry of Health and
Child Welfare MOHCW in Mashonal and West Province of Zimbabwe. It was observed that
departments were operating with mandated budgets and that planning and control were not
integrated. In addition it was also observed that performance reports were being used to fix
blame on management and that performance reports were not being distributed to sectional
managers on a regular basis.
2.4.2 Zero Based Budgeting

Rehman et al. (2011) studied the impact of zero-based budgeting (ZBB) on employee
commitment. The study based upon data collected from two big cities of Pakistan. The objective
of the research was to find out if there was any relation between zero-based budgeting and
employee commitment. In this research, data was collected from public and private sector
employees from Islamabad and Lahore region. The findings of the research were that zero based
budgeting has moderate effect on employee commitment in an organization.
Meliano (2011) surveyed management perception on the usefulness of zero based
budgeting: evidence from non-governmental organizations in Kenya. The objective was to
establish the managerial perception on the usefulness of Zero Based Budgeting among
nongovernmental organizations in Kenya. From the findings, the study concluded that zero based
budgeting is very useful in Non-Governmental Organizations in Kenya given that it has
flexibility, communicate corporate goals, cost minimization and knowledge sharing.
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CHAPTER THREE
RESEARCH METHODOLOGY
3.1 Research Design

The research design adopted for this study was the survey design, descriptive
method and non-experimental design. This was used for the purpose of assisting the
researcher in achieving the objective of the study.
3.2 Area of the Study

This research was conducted on the an assessment of factor that are responsible for
budget failure in Nigeria considering Nigeria Bottling Company Plc, located at Egbeda
Local Government Alakia, Ibadan, Oyo state as case study.
3.3 Population of the Study

The population of the study comprised of the entire staff in Nigeria Bottling
Company (NBC) Plc. The population of NBC Plc, Ibadan Oyo state comprise of 260
members of staff.
3.4 Sample and Sampling Procedure

In the course of carrying out this study, the researcher made use of Simple
Random Sampling Technique to select 56 staff across various departments of the
company out of the total population of 260 staff while purposive sampling method was
used to select Nigeria Bottling Company Plc, Ibadan among all the manufacturing
company in the Federation. This then constitute the study sample.
Department Population Sample

Administrative 30 6
Production 90 20
Sales 50 12
Marketing 90 18
Total 260 56
Source: Field Survey, 2021
18
3.5 Instruments for Data Collection
The researcher made use of questionnaire as instrument for data collection.
Formulated questions related to the topic were printed with instructions to guide the
respondents and enable them express their opinion without researcher’s interference.
3.6 Methods of Data Collection

This refers to where the information originates. In carrying out this study, the
researcher made use of both primary and secondary sources of data.
Primary source: primary data are original or first hand by nature. The primary sources of
data was obtained from the responses obtained through the questionnaire drafted and
administered to enable the researcher obtain wide range of information which would not
have been possible through any other means.
The secondary source of data involves information gotten from already conducted
research work that relates to the study. This includes textbooks, journals, and magazines.
The reliability of the instrument is based on the consistency of responses obtained from
the pilot study.
3.7 Method of Data Analysis

Data was analyzed using both descriptive and inferential method. The descriptive
method used includes frequencies, percentages and tables while the inferential method
employed is the chi-square test statistic. The chi-square test statistic was used to test the
formulated hypothesis using Scientific Package for Social Science (SPSS) version 23.
The formula for determine the value of the test statistic is
X2 = Σ (O-E)2
E
X2 = chi - square Σ = Summation O = Observed Frequency E - Expected
frequency
19
Decision rule: if the tabulated chi-square is greater than the calculated chi-square (X 2),
the null hypothesis (Ho) will be accepted and the alternative hypothesis will be rejected
but if the tabulated chi-square is less than the calculated chi-square (X 2) then the
alternative hypothesis will be accepted and null hypothesis will be rejected.
20
CHAPTER FOUR
DATA PRESENTATION, ANALYSIS AND INTERPRETATION
4.1 Presentation and Analysis of Data Distribution

Section A:
Demographic Variable of Respondents
Table 4.1:1
Sex
Frequency Percent Valid Percent Cumulative

Percent
Male 36 64.3 64.3 64.3

Valid Female 20 35.7 35.7 100.0
Total 56 100.0 100.0

The above table shows that 64.3% of the respondents are male while the remaining 35.7% were
female.
Table 4.1:2
Age

Percent
18-25 10 17.9 17.9 17.9
26-35 15 26.8 26.8 44.6

Valid 36-45 16 28.6 28.6 73.2
46-60 15 26.8 26.8 100.0
Total 56 100.0 100.0

The above table shows that 17.9% of the respondents fall under age bracket 18-25, 26.8% fall
under 26-36, 28.6% fall under 36-45 while the remaining 26.8% of the respondents fall under
age bracket 46-60 years.
21
Table 4.1:3
Marital Status

Percent
Single 15 26.8 26.8 26.8
Married 30 53.6 53.6 80.4
Valid Divorce 6 10.7 10.7 91.1
Separated 5 8.9 8.9 100.0
Total 56 100.0 100.0

The above table shows that 26.8% of the respondents are single, 53.6 are married, 10.7% are
divorce while the remaining 8.9% of the respondents have separated.
Table 4.1:4
Academic Qualification

Percent
SSCE 5 8.9 8.9 8.9
ND/NCE 15 26.8 26.8 35.7
Valid HND/B.Sc 30 53.6 53.6 89.3
Others 6 10.7 10.7 100.0
Total 56 100.0 100.0

The above table shows that 8.9% of the respondents had SSCE and their qualification, 26.8% had
ND/NCE, 53.6% had HND/B.Sc while the remaining 10.7% had other qualification.
22
Section B:
Response to Research Question
Table 4.1:5
Do you agree that financial performance has positive effect to a manufacturing
company?

Percent
Strongly Agreed 25 44.6 44.6 44.6
Agreed 20 35.7 35.7 80.4
Valid Disagreed 6 10.7 10.7 91.1
Strongly Disagreed 5 8.9 8.9 100.0
Total 56 100.0 100.0

The above table shows that 44.6% of the respondents strongly agreed that financial performance
has positive effect to a manufacturing company, 35.7% agreed, 10.7% disagreed while the
remaining 8.9% of the respondents strongly disagreed.
Table 4.1:6
Do you agree that there is relationship between budgetary controls and financial
performance of a manufacturing company

Percent
Agreed 8 14.3 14.3 76.8
Total 56 100.0 100.0

The above table shows that 62.5% of the respondents strongly agreed that there is relationship
between budgetary controls and financial performance of a manufacturing company, 14.3%
agreed, 12.5% disagreed while the remaining 10.7% of the respondents strongly disagreed.
23
Table 4.1:7
Does company always prepare budgets?

Percent
Agreed 5 8.9 8.9 80.4
Total 56 100.0 100.0

The above table shows that 71.4% of the respondents strongly agreed that their company always
prepare budgets, 8.9% agreed, 8.9% disagreed and the remaining 10.7% of the respondents
strongly disagreed.
Table 4.1:8
Do you involved in the budget setting process?

Percent
Agreed 15 26.8 26.8 62.5
Total 56 100.0 100.0

The above table shows that 35.7% of the respondents strongly agreed that they involve in budget
setting process, 26.8% agreed, 17.9% disagreed while the remaining 19.6% strongly disagreed.
24
Table 4.1:9
Does company is sensitized on the budget process?

Percent
Agreed 9 16.1 16.1 78.6
Total 56 100.0 100.0

The above table shows that 62.5% of the respondents strongly agreed that their company is
sensitized on the budget process, 16.1% agreed, 14.3 disagreed while the remaining 7.1%
strongly disagreed.
Table 4.1:10
Does performance indicators normally included in the budgets of a manufacturing
company?

Percent
Agreed 20 35.7 35.7 80.4
Total 56 100.0 100.0

The above table shows that 44.6% of the respondents strongly agreed that performance indicators
normally included in the budgets of a manufacturing company, 35.7% agreed, 14.3 disagreed and
the remaining 5.4% of the respondents strongly disagreed.
25
Table 4.1:11
Does you agree that performance indicators are being set?

Percent
Agreed 8 14.3 14.3 82.1
Total 56 100.0 100.0

The above table shows that 67.9% of the respondents strongly agreed that performance indicators
are being set in their organization, 14.3% agreed, 8.9% disagreed while the remaining 8.9%
strongly disagreed.
Table 4.1:12
Do you agree that resource re-allocation is based on the performance indicators?

Percent
Agreed 10 17.9 17.9 44.6
Total 56 100.0 100.0

The above table shows that 26.8% of the respondents strongly agreed that resource reallocation
is based on the performance indicators, 17.9% agreed, 44.6% disagreed while the remaining
10.7% strongly disagreed.
26
Table 4.1:13
Do you often receive guidelines from the top management on the budget process?

Percent
Agreed 20 35.7 35.7 89.3
Total 56 100.0 100.0

The above table shows that 53.6% of the respondents strongly agreed that they often receive
guidelines from the top management on the budget process, 35.7% agreed, 5.4% disagreed while
the remaining 5.4% strongly disagreed.
Table 4.1:14
Do you agree that governing council/chairman normally checks on the progress as
planned?

Percent
Agreed 20 35.7 35.7 62.5
Total 56 100.0 100.0

The above table shows that 26.8% of the respondents strongly agreed that governing council
normally checks on the progress as planned, 35.7% agreed, 17.9% disagreed while the remaining
19.6% of the respondents strongly disagreed.
27
Table 4.1:15
Do you agree that budget performance is always communicated?

Percent
Agreed 23 41.1 41.1 58.9
Strongly Disagree 4 7.1 7.1 100.0
Total 56 100.0 100.0

The above table shows that 17.9% of the respondents strongly agreed that budget performance is
always communicated, 41.1% agreed, 33.9% disagreed while the remaining 7.1% of the
respondents strongly disagree.
Table 4.1:16
Do you agree that level of budget monitoring and control in your company is excellent?

Percent
Strongly agreed 45 80.4 80.4 80.4
Agreed 5 8.9 8.9 89.3
Total 56 100.0 100.0

The above table shows that 80.4% of the respondents strongly agreed that level of budget
monitoring and control in their company is excellent, 8.9% agreed, 7.1% disagreed while the
28
Table 4.1:17
Do you think that the level of budget monitoring and control in your company is
adequate?

Percent
Agreed 10 17.9 17.9 71.4
Total 56 100.0 100.0

The above table shows that 53.6% of the respondents strongly agreed that the level of budget
monitoring and control in their organization is adequate, 17.9% agreed, 14.3% disagreed while
the remaining 14.3% of the respondents strongly disagreed.
Table 4.1:18
Do you think that your company achieve most of budget plans?

Percent
Agreed 15 26.8 26.8 80.4
Valid Disagree 8 14.3 14.3 94.6
Total 56 100.0 100.0

The above table shows that 53.6% of the respondents strongly that their organization achieve
most of budget plans, 26.8% agreed, 14.3% disagreed while the remaining 5.4% of the
respondents strongly disagreed.
29
Table 4.1:19
Do you agree that your company fulfilled all her plans to accommodate project work?

Percent
Agreed 10 17.9 17.9 89.3
Total 56 100.0 100.0

The above table shows that 17.4% of the respondents strongly agreed that their company fulfilled
all her plans to accommodate project work, 17.9% agree, 3.6% disagreed while the remaining
7.1% strongly disagreed.
Table 41:20
Do you agree that your company spend in accordance to the planned activities?

Percent
Agreed 5 8.9 8.9 89.3
Total 56 100.0 100.0

The above table shows that 80.4% of the respondents strongly agreed that their company spend
in accordance to the planned activities, 8.9% agreed, 5.4% disagreed while the remaining 5.4%
of the respondents strongly disagreed.
30
Table 4.1:21
Do you agree that the production department received all the funds budgeted for?

Percent
Agreed 15 26.8 26.8 62.5
Total 56 100.0 100.0

The above table shows that 35.7% of the respondents strongly agreed that the production
department received all the funds budgeted for, 26.8% agreed, 19.6% disagreed while the
Table 4.1:22
Do you agree that your programmes are in line with budget objective?

Percent
Agreed 10 17.9 17.9 89.3
Total 56 100.0 100.0

The above table shows that 71.4% of the respondents strongly agreed that their firm are in line
with budget objective, 17.9% agreed, 3.6% disagreed while the remaining 7.1% of the
respondents strongly disagreed.
31
4.3 Test of Hypothesis
Test of Hypothesis I
H01: Budgetary control has no significant impact on the financial performance of
manufacturing firms in Nigeria
In testing hypothesis I, table 4.10 is used.
Test Statistics
Is there any relationship between

budgeting and profitability of a
company?
Chi-Square 10.286a
Df 1
Asymp. Sig. .001
Exact Sig. .002
Point Probability .001
a. 0 cells (0.0%) have expected frequencies less than 5. The minimum expected
cell frequency is 28.0.
Rule: If the chi-square value is greater than the point profitability, then the null
hypothesis (Ho) will be rejected and the alternative accepted. But if the chi-square value
is lesser than the calculated chi-square (X 2) then alternative hypothesis be rejected and
null hypothesis accepted.
Decision: Since the calculated value of X2 is 10.286 which is greater than the chi-
tabulated reported at Point Profitability of 0.001, therefore null hypothesis is rejected and
alternative hypothesis accepted. The alternative hypothesis stated that budgetary control
has significant impact on the financial performance of manufacturing firms in Nigeria
32
Hypothesis II
H02: There is no relationship between budget and budgetary control and the profitability of a
manufacturing company
In testing hypothesis II, table 4.13 is used.
Test Statistics
is there any relationship between

budgeting techniques and
organizational growth?
Chi-Square 12.102a
Df 1
Asymp. Sig. .001
Exact Sig. .002
Point Probability .036
a. 0 cells (0.0%) have expected frequencies less than 5. The minimum expected
cell frequency is 28.0.
Since the calculated value of X 2 is 12.102 which is greater than the chi-tabulated reported
at Point Profitability of 0.036, therefore null hypothesis is rejected and alternative
hypothesis accepted. The alternative hypotheses stated that there is no relationship
between budget and budgetary control and the profitability of a manufacturing company
33
CHAPTER FIVE
SUMMARY, CONCLUSION AND RECOMMENDATIONS
5.1 Summary
This study examined the assessment of factors responsible for budget failure in Nigeria.
Various literatures from different authors were reviewed to enrich the research work. The study
adopted survey design method. The results of the analysis revealed that there exists a significant
relationship between budgetary allocation and the performance of a manufacturing company.
5.2 Conclusion
A budget is seen as an effective tool for management in coordinating the affairs of the
organisation. However, to prepare a budget, an organisation must know where it is heading to.
Budget is futuristic in nature, it states what an organisation wants to achieve in the future. A
system of budgetary control compels management to look into the future and use all techniques
that can be used to shape the future. The budgeted figures must be compared with the actual
results on timely basis throughout the year to ensure that management knows where deviations
are occurring and to take corrective measures. The budget should be seen as a guide that reflects
management’s thinking at the time it was prepared. However, the budget should be flexible in
nature so that it will be able to accommodate necessary changes. The objectives of
manufacturing companies should be to satisfy the needs of their customers as well as making
profit.
Budget is indeed an effective tool for cost control in manufacturing industries. It is not
only good to have a good budget in manufacturing industries but the combination of a good
budget and good management will produce a good result. Budget has helped management to
systematically plan ahead and organise the company by placing economic and human resources
in the most financially rewarding areas and to make various managers aware of the scarce
resources. Budgets have helped to coordinate the various segments of the company and achieve
goal congruence. Budgetary control is extremely important and effective for management in
piloting the affairs of the company. Finally, it is important to note that budget serves as a tool
used by management to control cost in manufacturing industries.
34
5.3 Recommendations
Based on findings, the study recommends that in order to enhance the effectiveness of
Budgetary control techniques in the Organizations, the management should put in place
measures to solve the budgetary control system problems such as enhancing better understanding
of budgetary control techniques, their behavior and institutional dynamics among the staff,
developing strong financial integration with performance management, quarterly revision of
financial plan to redirect resources at frequent intervals, better engagement between
organizational leaders, managers, finance staff with timing of the financial plan. Also, other
recommendations were stated as follows:
 The study recommends further research on budget planning and organizational
Performance and also the relationship between budget implementation and organizational
performance.
 It is important to make a realistic forecast: The budget set by the management should be
that which is attainable. The figures contained in the budget should be attainable no matter
the prevailing economic circumstances. This is because the cause of variation between the
budgeted and actual figures is unrealistic targets. If the targets are realistic, employees will
strive hard to meet the target.
 Sound planning followed by a good budgeting system: It is necessary to prepare a budget
manual which everyone will follow and refer to for guidance and information about the
budgetary process.
 Punishments for failing to meet targets should not be too harsh. This might drive workers
to engage in unethical practices just to ensure that budget targets are met.
 Formulation of effective and efficient policies and strategies: Management should
formulate policies and strategies that can enable them to monitor and maintain effective
control of their operation and attain the optimal level of performance.
 Employee participation should be involved in budget preparation because active
participation of employees is more effective than when budget is being imposed on them.
 Budget should be set in such a way that it will lead to goal congruence.
 The flexible budgeting system is mostly associated with government owned organizations,
and as such, it is recommended that zero-based budgetary should equally be adopted in
view of its numerous advantages.
35
 Based on the fact that actual budget preparation, co-ordination and implementation are
almost exclusively the responsibilities of both top level management. It is therefore
recommended that heads of units and departments should be more involved in the
preparation of budgets and not just the implementation. This of course is with due regards
to organizational policy and considering the fact that the individuals saddled with tactical
and operational activities of an organization are in a vantage position to make budget
estimates that will be more reliable and accurate.
 It is equally recommend that operating performances report, which is occasionally
prepared, should be done at more regular intervals (such as bi-weekly). This is
recommended in recognition of the complexities of the budgetary system and it is
envisaged that if the more regular reporting approach is adopted, it will in no small
measure enhance the budgetary control system, since the shorter the period, the more
effective the control.
 As enumerated above, it is being re-emphasized that the budget committee should include
all unit/departmental heads, supervisor and sub-heads that have direct control with the
organizational activities. This will create a forum for wider participation of all relevant
stakeholders in the company’s management process, thereby enhancing the exchange of
ideas and views about how the operation of the business could be improved. In this way,
proper co-ordination of each department or sub-department budget can be ensured through
careful scrutiny of all the components of the budget before the top management makes final
approval.
 Consequently, since budgeting and budgetary control contribute to the improvement of
management efficiency and high productivity; the budget committee should be educated in
the implementation of budget. This would enable them to understand the importance of
adhering to actual budget provisions thereby minimizing loses. Thus budget education
should be conducted at regular intervals for all principal officers of the organization, by
reputable firms, as the usefulness of such an exercise cannot be overemphasized.
36
REFERENCES
Abdullahi, A.M & Angus, O.U. (2012). Budget in Nigeria Public Sector: Need for Balanced
Scorecard Perspective. International Journal of Finance and Accounting, 1(2): 1-6
Abel, A. (2002). Budgetary, Profit Planning and Control process, ICAN News Jan/Mar ed
Abogun, S & Fagbemi, T.O. (2012). The Efficacy of Budgeting as a Control Measure in
Developing Economics: A Study from Nigeria. Asian Social Science Journal, vol. 8, issue
1, p176.
Aborode, R. (2005). Strategic Financial Management, Lagos: Eltoda Ventures Ltd
Akintoye, I.R. (2008). Budget and Budgetary Control for Improved Performance: A
Consideration for Selected Food and Beverages Companies in Nigeria. European Journal
of Economics, Finance and Administrative Sciences. ISSN 1450-2275, Issue 12 (2008).
Ali M., and Fowzia R., (2009): Use of Responsibility Accounting in Banks in Bangladesh. Dhaka
University Journal of Business Studies, Vol 3, No. 2
Anthony, R. and Govindarajan, V. (2004). Management Control Systems”, McGraw-Hill, New

York, NY.
Bescos, Cauvin, Langevin and Mendoza (2003). Criticisms of budgeting: A contingent approach.
Bryman, A. (2004).Social Research Method” ,2nd Ed, Oxford University Press, New York.
Chenhall R. (2003). Management control systems design within its organisational context,
Oxford, pp. 127-168
Chong V., Chong K. (2002). Budget goal commitment and informational effects of budget
participation on performance, Sarasota
Daum, J. (2002).Performance Management Beyond Budgeting: The New Economy Analyst

Report
David and Kogan. P (2001). Cost control: A strategic guide, India PVT Ltd, for West
Drury, C. (2000). Management and Cost Accounting, London: International Thomson Business
Press, 4th Edition.
37
APPENDIX I
Department of Accountancy,
Osun State Polytechnic,
P.M.B. 301, Iree,
Osun State.
07-02-2021
Dear Respondent,
The researcher is a student of the Department of Accountancy, Osun State Polytechnic, Iree,
carrying out a research study on the topic "Budget and Budgetary Control: A tool for enhanced
performances in manufacturing companies in Nigeria”.
I will be very grateful if you would complete the attached questionnaires to the best of your
knowledge to enable me complete a successful research on the topic. Be assured that the
information received will be used solely for this study.
Thanks for your understanding and cooperation.
Yours faithfully,
Ibrahim Nofisat A.
18/ACN/0755
38
APPENDIX II
RESEARCH QUESTIONNAIRE
INSTRUCTION: Please tick ( x ) in the appropriate place for your answer.
SECTION A: Demographic variable of the respondents
1. Sex of respondents:
Male [ ]
Female [ ]
2. Age:
(a) 18-25 [ ] (b) 26-35 [ ] (c) 36-45 [ ] (d) 46-60 [ ]
3. Marital Status:
(a) Single [ ] (b) Married [ ] (c) Divorce [ ] (d) Separated [ ]
4. Academic Qualification:
(a) SSCE [ ] (b) ND/NCE [ ] (c) HND/B.Sc [ ] (d) Others [ ]
SECTION B: Respond to research questions
Please respond to the following statements by indicating the extent to which you agree or
disagree with the activity
Note: a. = Strongly Disagree b. = Disagree c. = Agree d. = Strongly Agree
S/N Questions Options

BUDGET AND BUDGETARY CONTROL a b c d
5 Do you agree that financial performance has positive effect to a
6 Do you agree that there is relationship between budgetary controls
and financial performance of a manufacturing company?
7 Does, company always prepare budget?
8 Do you involved in the budget setting process?
9 Does, company is sensitized on the budget process?
10 Does performance indicators normally included in the budgets of a

39
11 Do you agree that performance indicators are being set?
12 Do you agree that resource re-allocation is based on the performance

indicators?
MONITORING AND CONTROL
13 Do you often receive guidelines from the top management on the budget
process?
14 Do you agree that governing council/chairman normally checks on the
progress as planned?
15 Do you agree that budget performance is always communicated?
16 Do you agree that level of budget monitoring and control in your

company is excellent?
17 Do you think that the level of budget monitoring and control in your
company is adequate?
FINANCIAL PERFORMANCE
18 Do you think that your company achieve most of budget plans?
19 Do you agree that your company fulfilled all her plans to accommodate
project work?
20 Do you agree that your company spend in accordance to the planned

activities?
21 Do you agree that the production department received all the funds
budgeted for?
22 Do you agree that your programmes are in line with budget objectives?
40

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CHAPTER ONE

1.3 Objective of the Study

1.4 Research Questions

1.6 Scope of the Study

1.7 Limitation of the Study

1.8 Significance of the Study

1.9 Definition of Terms

2.2 Conceptual Framework

2.2.3 Administration of Budget in Manufacturing Companies

2.2.4 Budgetary Control

2.2.5 Budgetary Control and Management

2.3.2 Accounting Theory

2.3.3 Budgetary Control Theory

2.4 Empirical Framework

2.4.2 Zero Based Budgeting

3.1 Research Design

3.2 Area of the Study

3.3 Population of the Study

3.4 Sample and Sampling Procedure

Department Population Sample

3.6 Methods of Data Collection

3.7 Method of Data Analysis

4.1 Presentation and Analysis of Data Distribution

Frequency Percent Valid Percent Cumulative

Male 36 64.3 64.3 64.3

Total 56 100.0 100.0

Source: Field Survey, 2021

Frequency Percent Valid Percent Cumulative

18-25 10 17.9 17.9 17.9

26-35 15 26.8 26.8 44.6

46-60 15 26.8 26.8 100.0

Total 56 100.0 100.0

Source: Field Survey, 2021

Frequency Percent Valid Percent Cumulative

Single 15 26.8 26.8 26.8

Married 30 53.6 53.6 80.4

Valid Divorce 6 10.7 10.7 91.1

Separated 5 8.9 8.9 100.0

Total 56 100.0 100.0

Source: Field Survey, 2021

Frequency Percent Valid Percent Cumulative

SSCE 5 8.9 8.9 8.9

ND/NCE 15 26.8 26.8 35.7

Valid HND/B.Sc 30 53.6 53.6 89.3

Others 6 10.7 10.7 100.0

Total 56 100.0 100.0

Source: Field Survey, 2021

Frequency Percent Valid Percent Cumulative

Strongly Agreed 25 44.6 44.6 44.6

Agreed 20 35.7 35.7 80.4

Valid Disagreed 6 10.7 10.7 91.1

Strongly Disagreed 5 8.9 8.9 100.0

Total 56 100.0 100.0

Source: Field Survey, 2021

Frequency Percent Valid Percent Cumulative

Strongly Agreed 35 62.5 62.5 62.5

Agreed 8 14.3 14.3 76.8

Valid Disagreed 7 12.5 12.5 89.3