IMPACT OF BUDGETARY CONTROL ON THE PROFIT OF BUSINESS ENTERPRISE
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IMPACT OF BUDGETARY CONTROL ON THE PROFIT OF BUSINESS ENTERPRISE
CHAPTER ONE: THE IMPACT OF BUDGETARY CONTROL ON BUSINESS ENTERPRISE INTRODUCTIONS’ PROFIT
1.1 BACKGROUND OF THE STUDY
Because of the increasing complexity of the business environment, a methodical approach to the influence of budgetary management on business profit is required.
According to business philosophy, the national or multinational company goal is to maximise profit by producing a big volume of goods at a low cost. Sufficient profit is essential in order for the company organization’s efficiency rating to be high.
The business owners expect dividends, the creditors expect payment, the personnel of the business organisations expect remuneration, and the social duty to the community where they are based. The financial inflow must meet all of the demands.
As a result, the management of business companies must organise their operations and allocate their resources into projects that will return the greatest profit.
1.2 STATEMENT OF THE PROBLEM
In relation to the problem listed in the problem statement, this study seeks to accomplish the following:
1. Establishing the relationship between budgetary controls and profit in interviews.
2. Raising awareness of the importance of controls in achieving constant profit maximisation.
3. Adding to previous information, the effects of budgetary constraints on earnings.
4. Making relevant advice on methods that could be used to boost profit.
1.3 OBJECTIVES OF THE STUDY
The researcher intends to achieve the following aims with this study:
1. Understand the goals and objectives of budgetary control.
2. To understand the difficulty with monetary control
3. Understanding of budgetary control and profit.
4. To identify the characteristics of good budgetary control.
5. To understand the success and implementation of budgetary control.
1.4 IMPLICATIONS OF THE STUDY
A budget is thus a baseline against which the actual achievements of business enterprises can be measured.
While budgetary control is the planning ahead of time of the numerous functions of a commercial firm in order to govern the business as a whole. As a result, budgeting and monetary control are inextricably linked.
The current phenome’s high mortality rate of business firms has been linked to a lack of budgetary restrictions. Some businesses shift from one accounting period to the next with insufficient controls,
with little or no regard for the impact controls have on earnings. As a result, their profit has fluctuated little or not at all over the years.
As a result, the company strategy has been somewhat defeated, and meeting organisational obligations has become a challenge.
The organisation that establishes controls pursues them with such zeal that the entire substratum collapses. These issues have continued, and there is a need for a thorough investigation of the subject in order to alleviate them on the one hand and eliminate them on the other.
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