CHAPTER ONE
INTRODUCTION
BACKGROUND OF THE STUDY
The use of budget in government long preceded its application in business or the business sector. In the stable economic environment of the period before world war, few large companies in U.S.A and U.K used budgets. The result of the use of budget conflicted, some pioneer companies reported it was a significant tool to management but reported it has an ill or even a negative effect on efficiency and productivity. In order to avoid the conflicting result of the large segment still straddled the fence awaiting further information and a more definite result. The world depression of the 1929 and its attendant business worries and trouble made the use of budgeting imperative in order to plane the growth of the enterprise.
The population of budgeting was the direct outcome of two inquiries conducted to assess the benefit or otherwise as budget as applied of for the industry. The national industrial conference board sat in U.S.A while the international management institute worked in Geneva. Both were inaugurated in 1930.The concept of business budgeting is even more resent in Nigeria. It was introduced by the first foreign multinational that operated in Nigeria and gradually a small firm adopted it.The ultimate goal of any business organization is to maximize profit, which can result form the management conscious effort to increase sale/render efficient service and reduce cost.
In the attainment of this subsidiary goal, management must have a careful prepared and articulated business and organizational plane, a rational plane commitment of the scarce commodity.
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