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Budgets and Budgetary Control as a Management Tool for Ghana Metropolitan Assemblies

Received: 19 August 2015     Accepted: 27 August 2015     Published: 12 September 2015
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Abstract

The study examined the budgeting and budgetary control as a management tool in Ghanaian Metropolitan Assemblies with the view to find out the importance attached by metropolitan, municipal and district assemblies in Ghana to how budgets are prepared and implemented, benefits and problems associated with budgeting and the extent at which budget variance reports are used as a performance measure. The survey instrument was questionnaire. Statistical Package for Social Sciences (SPSS 16) software was used to analyze the data. The findings of the study revealed that, metropolitan assemblies prepare budgets and plans to guide their activities and operations and that there is generally a high level of budget participation. The major conclusion was that metropolitan assemblies use a rigorous budgetary control practices in its operations and attaches much importance to budgets and budgetary control as vital tool to aid them in effective and efficient management of their operations. It is recommended, among other things, that appropriate measures should be put in place to enable all the assemblies in Ghana prepare plans and budgets since the practices lead to effective utilization of state resources.

Published in Journal of Finance and Accounting (Volume 3, Issue 5)
DOI 10.11648/j.jfa.20150305.17
Page(s) 159-163
Creative Commons

This is an Open Access article, distributed under the terms of the Creative Commons Attribution 4.0 International License (http://creativecommons.org/licenses/by/4.0/), which permits unrestricted use, distribution and reproduction in any medium or format, provided the original work is properly cited.

Copyright

Copyright © The Author(s), 2015. Published by Science Publishing Group

Keywords

Budget, Budgetary Control, Management Tool

References
[1] Amoako – Gyampah and Acquaah, M., (2008). Manufacturing Strategy, Competitive Strategy and Firm Performance, An empirical study in a developing economy environment, production economics, Vol. 3, issue 2, pp. 575 – 592.
[2] Herath, S. K. and Indrani, M. W. (2007). Budgeting as Competitive Advantage Evidence from Sri Lanka, Journal of American Academy of Business, Vol. 11, Issue I, pp. 79 – 91.
[3] Chenhall, R. H., 2003,Management control systems design within its organizational context: findings from contingency-based research and directions for the future, Accounting, Organizations and Society, vol. 28, issue 2-3, pages 127-168.
[4] Davilla, T., (2000): “An Empirical Study on the Drivers of Management Control Systems’ Design in New Product Development”, Accounting, Organizations and Society, 25, pp.383-409.
[5] Abernethy, M. A. & Brownell P. (1997). Management Control Systems in Research and Development Organizations. The Role of Accounting, Behaviour and Personnel Controls. Acc Org. Soc 22: 233—248.
[6] Pollitt, C.; Bouckeart, G., (2000). Public Management Reform: a comparative analysis; Oxford University Press, Oxford.
[7] Bradstreet Report, (2004). Better Budgeting: A Report on Better Budgeting Forum, London: The Chartered Institute of Management Accountants and the ICAEW, Faculty of Finance and Management.
[8] Emmanuel, C., Otley, D. & Merchant, K. (1990). Accounting for Management Control, (2nd edn), Chapman and Hall.
[9] Kaplan, R. S., Norton, D. P. (1992). "The Balanced Scorecard: Measures That Drive Performance", Harvard Business Review, Jan/Feb Ed.
[10] Blocher, E. J.; Chen, K. H. (2002). Cost Management: A Strategic Emphasis. 2nd Edition, New York, McGraw-Hill International.
[11] Abernethy, M.A.; Stoelwinder, J.U. (1995). The Role of Professional Control in the Management of complex organizations, Accounting, Organization and Society, 20, 1 -77.
[12] Carter, S.; McDonald, N. J. and Cheng, D. C. B. (1997). FAO Corporate Document Repository, Basic Finance for Marketers.
Cite This Article
  • APA Style

    Edmund Kyei, Collins Owusu Kwaning, Donkor Francis. (2015). Budgets and Budgetary Control as a Management Tool for Ghana Metropolitan Assemblies. Journal of Finance and Accounting, 3(5), 159-163. https://doi.org/10.11648/j.jfa.20150305.17

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    ACS Style

    Edmund Kyei; Collins Owusu Kwaning; Donkor Francis. Budgets and Budgetary Control as a Management Tool for Ghana Metropolitan Assemblies. J. Finance Account. 2015, 3(5), 159-163. doi: 10.11648/j.jfa.20150305.17

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    AMA Style

    Edmund Kyei, Collins Owusu Kwaning, Donkor Francis. Budgets and Budgetary Control as a Management Tool for Ghana Metropolitan Assemblies. J Finance Account. 2015;3(5):159-163. doi: 10.11648/j.jfa.20150305.17

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  • @article{10.11648/j.jfa.20150305.17,
      author = {Edmund Kyei and Collins Owusu Kwaning and Donkor Francis},
      title = {Budgets and Budgetary Control as a Management Tool for Ghana Metropolitan Assemblies},
      journal = {Journal of Finance and Accounting},
      volume = {3},
      number = {5},
      pages = {159-163},
      doi = {10.11648/j.jfa.20150305.17},
      url = {https://doi.org/10.11648/j.jfa.20150305.17},
      eprint = {https://article.sciencepublishinggroup.com/pdf/10.11648.j.jfa.20150305.17},
      abstract = {The study examined the budgeting and budgetary control as a management tool in Ghanaian Metropolitan Assemblies with the view to find out the importance attached by metropolitan, municipal and district assemblies in Ghana to how budgets are prepared and implemented, benefits and problems associated with budgeting and the extent at which budget variance reports are used as a performance measure. The survey instrument was questionnaire. Statistical Package for Social Sciences (SPSS 16) software was used to analyze the data. The findings of the study revealed that, metropolitan assemblies prepare budgets and plans to guide their activities and operations and that there is generally a high level of budget participation. The major conclusion was that metropolitan assemblies use a rigorous budgetary control practices in its operations and attaches much importance to budgets and budgetary control as vital tool to aid them in effective and efficient management of their operations. It is recommended, among other things, that appropriate measures should be put in place to enable all the assemblies in Ghana prepare plans and budgets since the practices lead to effective utilization of state resources.},
     year = {2015}
    }
    

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  • TY  - JOUR
    T1  - Budgets and Budgetary Control as a Management Tool for Ghana Metropolitan Assemblies
    AU  - Edmund Kyei
    AU  - Collins Owusu Kwaning
    AU  - Donkor Francis
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    DO  - 10.11648/j.jfa.20150305.17
    T2  - Journal of Finance and Accounting
    JF  - Journal of Finance and Accounting
    JO  - Journal of Finance and Accounting
    SP  - 159
    EP  - 163
    PB  - Science Publishing Group
    SN  - 2330-7323
    UR  - https://doi.org/10.11648/j.jfa.20150305.17
    AB  - The study examined the budgeting and budgetary control as a management tool in Ghanaian Metropolitan Assemblies with the view to find out the importance attached by metropolitan, municipal and district assemblies in Ghana to how budgets are prepared and implemented, benefits and problems associated with budgeting and the extent at which budget variance reports are used as a performance measure. The survey instrument was questionnaire. Statistical Package for Social Sciences (SPSS 16) software was used to analyze the data. The findings of the study revealed that, metropolitan assemblies prepare budgets and plans to guide their activities and operations and that there is generally a high level of budget participation. The major conclusion was that metropolitan assemblies use a rigorous budgetary control practices in its operations and attaches much importance to budgets and budgetary control as vital tool to aid them in effective and efficient management of their operations. It is recommended, among other things, that appropriate measures should be put in place to enable all the assemblies in Ghana prepare plans and budgets since the practices lead to effective utilization of state resources.
    VL  - 3
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Author Information
  • Department of Accountancy and Accounting Information Systems, Kumasi Polytechnic, Kumasi, Ghana

  • School of Business and Management studies, Accra Polytechnic, Accra, Ghana

  • Department of Accountancy and Accounting Information Systems, Kumasi Polytechnic, Kumasi, Ghana

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