Budget and budgetary control as a tool for efficient and effective business decision (A case study of Saclux paint Company,umuahia):- Kalu Favour N

ABSTRACT

This study is on “Budget and budgetary control as a tool for efficient and effective business decision”. The study became necessary as a result ofseveral problems faced by business organizations resulting from poor planning based on these problems, the data so collected were analyzed using then descriptive statistic involving the use offrequencies and percentages. The test ofhypothesis was carried out using the t-test statistic of Pearson product moment correlation co-efficient method of testing hypothesis. Findings reveal that budgeting in business organization can help co ordinate operations, optimize the utilization of resources. It v/as revealed that budget and budgetary control could help in appraising and controlling performance. Useful recommendations have been made based on the findings which if practicalised will be of great benefit to business enterprises. The following recommendations are made by the researcher; Business firms should as a matter of necessity prepare periodic budget to guide their operations. Management should educate departmental heads on the budget and budgetary control systems of the corporation. This would enable them to understand the importance of budgeting and minimize cost. Adherence to budgetary provisions should be practiced by top management. This is because if arbitrary actions are taken by them, the realization of the budget would be impossible.