CHAPTER ONE
1.0 INTRODUCTION
A budget is a “financial and/or quantitative statement, prepared and approved prior to a defined period of time, of the policy to be pursued during that period for purpose of attaining a given objective. It may include income, expenditure etc.
The establishment of executives to requirement of a policy, and the continuous comparison of actual with budgeted result. A budget is thus a standard with which to measure the actual achievement of people, departments, firms etc.
In large firms, a system of budgetary control is used. Budgetary control is operated with a system of standard costing because both are interrupted but not interdependent. Budgetary control can be operated without standard costing, but budgetary control is certainly facilitated where standard costing is in operation. one the other hand, it would be difficult to operate a system of standard costing if budgets where not in use.
The behavioural aspect of budgeting is that researcher have failed to adequately expatiate on over the years, in which the research is focused.
1.1 BACKGROUND OF THE STUDY
Nestle was founded in 1866 by Henri Nestle having its headquarter in vevey, Switzerland, and today the world biggest food and beverage company employing around 265,000 people and having factories or operations in almost every country in the world which Nigeria is one of them.
Nestle being a manufacturing company take consonance of budgeting and budgetary control in order to achieve the budgeted plan of the organisation. Also in a large company like this (i.e Nestle), the budget is usually the responsibility of a budget committee.
Normally the Chief Executive is the chairman of the committee, but the responsibility for operating the system is undertaken by a budget offices, and other representative from different apartment.
The company, strategy is guided by several fundamental principles, its existing products grow through innovation and renovation while maintaining a balance in geographical activities and products lines.