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| Effect of Budget on Internal Control of Manufacturing Organization in Osun State, Nigeria |
Odetoyinbo, Yewande Odunayo, Adeyemi, Akeem Ademola, Hassan, Ajoke Esther, Adebisi, Rufus Olakunle, Adegbola, Muritala Makinde
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Abstract:
This study focuses on effect of budget on internal control of manufacturing organization in Osun State, Nigeria. The specific objectives are to: examine the profit making controls in manufacturing organization in Osun State; assess whether the manufacturing firms in Osun State plans their profits hence their losses are unnecessarily large in relation to their budget estimate; and identify the types of budgeting in some of the manufacturing firms in Osun State that enhance efficiency. This study adopted a survey research design. The sampling techniques employed for this study are stratified and simple random sampling methods. The instrument used for this study was obtained from primary data. The primary data was obtained through properly structured questionnaire. The descriptive statistics of frequency distribution, percentages mean were used to analyze data while hypotheses were tested using Chi-squares. The study found that there those manufacturing business organizations do control their levels of profit making and, the means used to achieve it. The work also discovers that manufacturing firms do control their levels of profit making and, the means used to achieve it. The result also confirms that the type of budgeting in some of the manufacturing firms in Osun State is efficient. The study revealed that, all the respondents of the firm indicated the existence of an established budget process at the Company. Thus, an indicator that the firm's budgetary process goes through the standard stages of budget planning, budget control, budget coordination and budget evaluation. The study recommends that all the organizations should make sure that budgets are made within the procedures set out for the planning of a budget. Also, employers of any manufacturing business should make sure that he/she employs a qualified staff for various positions in the business. Also, management should establish a budget committee who are expertise in the field in order to help plan and investigate any variances that may occur.
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