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A survey of the challenges of budget preparation and implementation among manufacturing companies quoted at the Nairobi Stock Exchange

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dc.contributor.author Munene, Macharia
dc.date.accessioned 2015-09-27T10:13:52Z
dc.date.available 2015-09-27T10:13:52Z
dc.date.issued 2010
dc.identifier.citation GM Macharia - 2010, A survey of the challenges of budget preparation and implementation among manufacturing companies quoted at the Nairobi Stock Exchange en_US
dc.identifier.uri http://erepo.usiu.ac.ke/11732/1067
dc.description.abstract The manufacturing sector in Kenya contributes approximately 13% of the GDP and is thus significant player in the economy. The purpose of this study was to establish the challenges of budgeting preparation and implementation among manufacturing companies listed in the Nairobi stock exchange. The objective was to identify the challenges of budgeting among these companies. Towards this end it was important to examine the budgetary practices of the firms. To achieve this objective, the study adopted a descriptive survey research design whereby questionnaires were issued to 18 manufacturing companies listed at the NSE of which 14 (70%) responded. The responses were analyzed using percentages, measures of central tendency (the mean) and for dispersion (standard deviation was used). The study found that the major challenges facing budges preparation and implementation among manufacturing companies were lack of proper monitoring and review, poor communication of the budget requirement, lack of clear policy and procedures on budgets, lack of proper co-ordination and lack of skilled personnel. Incremental (prior year) budgeting is the most widely applied method of budgeting. The quoted manufacturing companies use a combination of the two approaches of budgeting, top –down approach and bottom-up approach in budgeting. Budgeting is also done as a tool for forecasting and planning, evaluating performance and judging and controlling performance. The study recommended that communication of the budget requirement should be encouraged and clear policy and procedures on budgets should be put in place to curb the challenges. The study suggested that a similar study be undertaken on other listed companies to augment this study’s findings. In addition to the above, these companies should have time plan and implementation team as possible solution to the budgeting challenges facing their organizations. en_US
dc.title A survey of the challenges of budget preparation and implementation among manufacturing companies quoted at the Nairobi Stock Exchange en_US
dc.type Article en_US


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