EFFECTS OF BUDGETING AND BUDGETARY CONTROL IN EXTRACTING INDUSTRY (A CASE STUDY OF SHELL CORPERATION OF NIGERIA)

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Abstract

The main aim of this write up is to throw more light on the review of budgeting control in a extracting industry. This research purely base on budget as an instrument of control in an organization and also as a means of highlighting the role of budget in any establishment and society at large. Data were collected for this research work were from both secondary and primary source. With the population of 180,questionnaire were administered and interview conducted for a sample size of 180 persons made up of staffs of the corporation .in any attempt to make the research meaningful and comprehensive the researcher has to divide the entire work into five chapters.which comprises of the deal with the introduction where the researcher give a brief discussion of the concept statement of problem, limitation and scope of the study.and also comprises of the literature review which deals with definitions of term classification, important of the subject matter “budget” with the following chapter deals on research methodology which explains the research design and also forms the basis for data collection.also states the analysis and interpretation of data and also shows that the hypothesis was tested, the concluding chapter throws more light on the work by summarizing the work and given the recommendation.


CHAPTER ONE

1.1              Background to the Study

Today the important of budget and budgetary control can never be over emphasized. Thus for survival of any oil cooperation, management need to embark on budget to effect proper planning and control. In this view, budgeting can be seen as a process of planning and control. Proper budgeting can never affect efficient plans of an organization without control. Control as it were is an important tool which must be priced to keep in check with the plans of the firms and for correction of any deviation from the stipulated plan of the organization in question. Hence a budgetary control comprises of both plan of operation with the scope of the plan. In pursuit to this, data were collected from journals and related works. In consequent writings it reviews the response of people and it was made known through questionnaires that the factors that affect the company’s profitability most in general economic conditions in the contrary as the people stated that cash budget is the best type of budget. For any cooperation such as multi-national oil company i.e. shell cooperation, would want to succeed it business executives must make use of budgetary control measure to avoid failure in business.

They are different classes and types of budget for different entities i.e. fixed budget, Flexible budget, Master budget, Zero budget and annual budget for government entities. It should be observed that whatever the class or structure of a budget they are used for maximizing...

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