The Impact of Budgetary Control on the Performance of Nigerian Manufacturing Companies

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Budgeting is a planning process which underlines predicting and quantifying the future in financial terms and predicting the future needs for finance. Aside from the planning role of budgeting, numerous articles on management accounting constantly stress the multi-purpose role of budgeting in business organization. Budgeting is used for forecasting, planning, coordination, communication, control and motivation. In the past few decades, considerable attention has been paid in particular to the role of management control of budgeting (Otley & Pollanen, 2000).
In order to reveal the nature of budgeting at business organizational level, it would be best to begin by comparing
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What seems rather unfortunate according to Tim Blumentritt (2006) is the fact that most organizations still treat the budgeting and strategic management processes separately and also, a significant portion of business organisations do not engage in strategic planning (Tim Blumentritt 2006). This study therefore intend to investigate the budgetary control practice of Nigerian breweries and 7up bottling company, two manufacturing companies in the Nigerian food industry and make suggestions of what seems to be the best practice based on literatures, articles and empirics. 1.3 OBJECTIVES OF THE STUDY
The purpose of this study will be to describe and explore the relationship between budgeting and performance. The exploratory inquiry will attempt to discover or identify potential variables and the nature of relationship regarding budgeting and organizational performance of Nigerian manufacturing companies from a review of the scholarly literature. The study will then try to examine whether the established relationship between budgeting and performance is confirmed by the actual budgetary practice of Nigerian breweries and 7up bottling company. The following is a list of the objectives of this study: 1) To explore the theoretical impact of budgeting on performance of manufacturing
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