However, it is a clear fact that enterprises are in business to make profit. Arnold (1987) believes in performance measurement through the comparison of various indices. For cost to remain within reasons, it is desirable to compare expenses against industry benchmark which is a good indicator of competitive standing. 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. The study recommended that realistic forecasts should be made and that there should be sound planning with effective and efficient formulation of policies and strategies Introduction Budgeting is one of the ways of controlling cost in manufacturing organisations. It was also discovered that manufacturing companies can reduce cost and maintain high quality products. It was discovered that budgetary control contributes to the profitability of manufacturing companies and it was also discovered that there are deviations from planned budget. The study employs the use of questionnaire instrument for the purpose of data collection and the data collected were tested with chi-square statistics through a Statistical Package for Social Sciences. The survey method was used and the companies encompass staff members of Cadbury Nigeria PLC, Friesland Foods Wamco Nigeria PLC and Nestle Nigeria PLC. The study examined the impact of budgetary control on cost control, profitability of manufacturing companies, the reasons for deviations and how these variances are reported as a means of control in budgeting and also examined whether the manufacturing companies can reduce cost as well as maintain the quality of their products and services. This study deals with budgetary control as an effective tool for cost control in manufacturing Companies in Nigeria.
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