BUDGETING A TOOL FOR PROFIT PLANNING IN A MANUFACTURING COMPANIES: A STUDY OF NIGERIAN GUINESS PLC, ABA.

Abstract The increased complexity of the society and high level of competition in the business world has made it imperative for business organization to do serious planning and control in order to survive volatile business climate. This research work studied budgeting as a tool for planning and control in a manufacturing firm with particular emphasis on Nigeria Guinness Plc Aba. The main objective of this study was to x-ray the relevance of budgeting as tool for planning and control in manufacturing firm. And also, to ascertain the effect of non-existence of budget on the performance of business organization. The methodology adopted were simple percentage and chisquare statistical methods to deduce general statement about the effect of budgeting on planning and control is relevant for the survival of manufacturing companies. Also, budgeting is a tool for measuring efficiency and performance in manufacturing firm. The recommendations put forward was that management of every organization should prepare budgeting and adhere strictly to the provisions of the budget. There should also be a regular and periodic review of the budget in order to detect variations. The research work will serve as a template to managers, entrepreneurs, creditors, and employees on how to effectively allocate scarce resources judiciously through budgetary planning and control.