The Impact of Budgetary Control on the Profitability of Business Organization a Case Study of Three Oil Industries

Abstract

Globally, a lot of business organizations have fold-up due to lack of liquidity. One of the major means of ensuring liquidity in an organization is to ensure that organizations carry out its activity to ensure that it will achieve a level of profitability that will guarantee the continuity of the organization. Hence the topic, the impact of budgetary control on the profitability of business organization. With the topic "The Impact of Budgetary Control on the Profitability of Business organization". This study is to be carried out to show the impact of budgetary control on the profitability of business organization. The aim of the study is to show why some business organization fail in their profit objective and to explain how as effective budgetary control could be used to enhance the profitability of business organization. Data used for this study were gathered through the review of related literature. Survey was also carried out and opinions were sampled about the topic through the use of questionnaires. The data obtained from the questionnaires were statistically analyzed with tables . The data in the tables were further analyzed with the help of chi-square for informed decision. The result obtained from this study shows that effective budgetary control have a strong and positive impact on the profitability of any business organization. Without ensuring that actions are carried out as budgeted to ensure that the budget goals are achieved , organizations will hardly meet their profit plan. In chapter five of this study, the study made some recommendation on how budgetary control as a tool could be used to control actions to ensure that profitability of business organizations is achieved .