Performance Measurement in an Organization Via Budget and Budgetary Control

Abstract

The research focuses on performance measurement in an organization via budget and budgetary control using Nigeria bottling company plc, Owerri plant as a case study from 2007 to 2021. The objectives of this study were; to examine the impact of budgeted sales on budgeted profit as a tool for measuring performance in organization; and to determine if budgeted production, and budgeted sales jointly have influence on budgeted profit as a tool for measuring performance in organization. The methodology employed was the Ordinary Least Square (OLS). The diagnostic tests such as normality, serial correlation, heteroscedastic and multicollinearity were all examined. The result of the analysis revealed that budgeted production and budgeted sales jointly have significant effect on the budgeted profit as a tool for measuring performance in Nigerian bottling company plc, Owerri plant during the year under study with a coefficient of variation of 44.6%. It was also concluded that budgeted sales have a significant but negative relationship with the budgeted profit as a tool for measuring performance in organization indicating that budgeted sales impacted negatively on budgeted profit in the organization with a coefficient of variation of 44.6%. The result also showed that budgeted production has no relationship with the budgeted profit as a tool for measuring performance.