MJAMR

Impact of Budgeting on the Profitability of a Manufacturing Company, a Case Study of Harris International

Nakayiki Annet, Ngiri Andrew, Akampurira Sarah


Abstract

In the locally founded Harris International in Uganda, this study looked at the connection between budgeting and budgetary management as independent variables and financial success as a dependent variable. It specifically looked at the connections between financial management, budgetary management, and the financial health of organizations as well as the impact of donor policy on those relationships. The investigator looked into the reasons behind the poor financial performance of numerous organizations in Uganda, despite the fact that they control nearly 50% of the budget for the nation, due to the general anxiety over many businesses failing to meet projected budgetary performance goals, as Moore (2005) noted. In order to determine how accounting and budgetary management affected the financial health of community groups in Uganda, the study used a correlation research methodology. Due to the requirement to gather data that is qualitative as well as quantitative, it used both quantitative and qualitative methodologies. The survey included 15 human rights associations which were specifically chosen from the Kampala district. The 67 respondents were purposefully chosen for the sample size out of a total of 210 participants. The statistical information was evaluated using proportions, frequencies, and correlations, whereas qualitative research involves distilling data into insightful themes. Budgeting and financial performance of organizations were shown to have statistically significant positive associations (r =.737 and.660, respectively), as were budgetary control and the financial performance of the organization. When donor policy was in place, these correlations' strengths decreased to 0.710 and 0.612, correspondingly. It was determined that donor policy undermines budgeting and budgetary control's influence on organizations’ profitability. In order to decrease their reliance on donor financing, it is advised that organizations research.miu.ac.ug/publications 301 METROPOLITAN JOURNAL OF BUSINESS & ECONOMICS (MJBE) ISSN 1813-4238 Vol. 2 Issue 4, July - 2023, Pages: 301-319 diversified their revenue streams. They should also enhance their financial planning and financial management systems.

Keywords

budgeting profitability manufacturing company and budget
Metropolitan Journal of Academic Multidisciplinary Research

Cite This Article

Nakayiki Annet, Ngiri Andrew & Akampurira Sarah (2023). Impact of Budgeting on the Profitability of a Manufacturing Company, a Case Study of Harris International. Metropolitan Journal of Academic Multidisciplinary Research, 2(7). https://journals.miu.ac.ug/pages/article.php?article_id=949

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