CASH BUDGET: A TOOL FOR DECISION MAKING IN AN ORGANIZATION (A CASE STUDY OF NIGERIA BOTTLING COMPANY, ONITSHA)

ABSTRACT

This study examined cash budget a tool for decision making in business organization.  The purpose of cash budget is to facilitate and ensure that cash is available so that the company can operate effectively at the levels provided for in the other budgets. For effective management of decision making. The objective of this study was achieved by using the under mentioned Nigeria bottling company Onitsha as a case study. The survey research method was made possible through the administration of questionnaires which were distributed randomly to management and supervisory level staff and some accounting staffs their responses where collected form the respondents and then analyzed, using the percentage rate methods. The analysis of data and finding revealed that cash budget is an aid to effective management, impact positively on profitability and above all, it was greatly accepted and applied, through there were some factors that hindered their full implementations. Conclusively, it could be said that without cash budget organizational goals and objectives may not be achieved. Therefore, it is recommended that control should follow planning and variance should be reporting and corrective action taken immediately. 

TABLE OF CONTENTS

Title page

Abstract

Table of contents

CHAPTER ONE: INTRODUCTION

1.1            Background of the study

1.2            Statement of problem

1.3            Objective of the study

1.4            Research questions

1.5            Hypothesis (if any)

1.6            Significance of the study

1.7            Scope of the study

1.8            Assumption of the study(if any)

1.9            Definition of terms

CHAPTER TWO: LITERATURE REVIEW

2.1            Conceptual definition of budget

2.2            Theoretical framework

2.3            Current Literature review

2.4            Summary of Literature review

CHAPTER THREE: RESEARCH METHODOLOGY

3.1            Design of the study

3.2            Area of the study

3.3            Population of the study

3.4            Sample size and sampling technique

3.5            Instrument for data collection

3.6            Validity of the  Instrument

3.7            Distribution and Retrieval of Instrument

3.8            Method of data analysis

CHAPTER FOUR: DATA PRESENTATION  AND ANALYSIS

4.1            Tabulation of Responses

4.2            Testing of hypothesis

4.3            Discussion of findings

CHAPTER FIVE: SUMMARY, CONCLUSION AND RECOMMENDATION

5.1            Summary of findings

5.2            Conclusion

5.3            Recommendation

5.4            Limitation of the findings

References

Questionnaire

CHAPTER ONE

INTRODUCTION

1.1     BACKGROUND OF THE STUDY:

Every rational economic unit has some objectives to attain, individual, corporate bodies in government have objectives to achieve. To achieve their respective objectives, resources have to be made available, unfortunately nature did not distribute her resources abundantly, whilst objectives and needs are numerous and varied as they are various economic units.

In order to make resources available, cash is needed, according to investopedia, cash is legal tender or corns that can be used to exchange goods, debt or services some time it can also incluces the value of assets that can be converted into cash immediately, as reported y a company.

According to Shine Mat (15 June 2012): companies have those primary motives for holding cash and hey are:

The transaction motive

The precautionary motive

The speculative motive.

The transaction motive enables firms and companies to conduct their ordinary business making purchases and sales. The precautionary motive depends on the predict ability of cash flow and the ability of company to borrow a short notice. This motive enable a firm to provide enough funds as a protection against unexpected opportunity that may arise. Moreover, sound working capital management require the maintenance of adequate amount of cash. The organization must plan towards its and this plan is know as budgeting a subset of corporate plan.

1.2     STATEMENT OF PROBLEM

Budget is one of the controlling instruments used by the management, it is a plan or estimate to be attained by an enterprise. In this study, efforts are made ot find solution to the following problems. The problem of why budget cases failed to be realized it is because of insufficient capital. Another problem that management face is their liability ot manage (long term) cash budget and forecast which may take up to two years, this is because of instability in the inflow and outflow of cash. Cash balances my fluctuate considerably within a single accounting period, there by making cash short tall that can put a company in serious jeopardy. To solve this, it is quite common to create and maintain cash forecasts on a weekly basis. If there may be large or unusually cash balances indicated in the cash budget. these balances are dealt with in the financing budget where suitable investment is indicated for them....

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Item Type: Project Material  |  Size: 58 pages  |  Chapters: 1-5

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