The Impact of Traditional Budgetary Control On the Profitability of XYZ Ltd

This study analyzes the impact of traditional budgetary control on the profitability of XYZ Ltd. It includes research methodology, data analysis, and conclusion with recommendations. The study focuses on the importance of budgetary control, traditional budgeting, and factors affecting profitability.

The Impact of Traditional Budgetary
Control On the Profitability of XYZ Ltd

TABLE OF CONTENTS
CHAPTER 3- RESEARCH METHODOLOGY.............................................................................3
Introduction.................................................................................................................................3
Research Strategy........................................................................................................................3
Research approach & philosophy................................................................................................3
Sampling Procedure....................................................................................................................4
Conceptual Framework...............................................................................................................4
Qualitative Research – Factor Definition....................................................................................5
Data and Data collection.............................................................................................................5
CHAPTER 4: DATA ANALYSIS..................................................................................................6
CHAPTER 5: CONCLUSION AND RECOMMENDATIONS...................................................23
REFERENCES..............................................................................................................................28
APPENDIX....................................................................................................................................29

CHAPTER 3- RESEARCH METHODOLOGY
Introduction
Research methodology is related with having the specific procedure that is taken into consideration for identifying, selecting.
Processing and evaluating information about a particular subject matter. The current study will involve research strategy, sampling
procedure, conceptual framework, data collection, evaluation technique, etc. so that significant understanding can be derived.
Research Strategy
There are basically two types of the research which can be taken into considerations by the organization in respect to gain the
proper understanding for accomplishing the objectives which involves qualitative and quantitative. The qualitative type of study is
widely taken into process for collecting the theoretical study. Quantitative type of research is used to get the numerical & fact based
data. For the current study regarding impact of traditional control on profitability is theoretical concept so that significant ability gain
relevant & reliable information can be derived. This has permitted the scholar to get the understanding about theories and framework
in turn depth knowledge to meet highlighted objectives can become possible. Qualitative research type is highly taken into procedure
by the businesses for gaining the proper understanding for ensuring that reliable report can be formulated. Ascertaining impact of
budgetary control over the revenue system and mitigation strategy to overcome the challenge of significant negative of variation
between actual performance & budgetary planning can be exerted in effective manner. Collection of non-numerical data for this
purpose can allow to get the accurate and fair understanding about the research in assessing accurate impact on profitability due to
traditional budgetary control can be derived.
Research approach & philosophy
Inductive and deductive are the two research approaches which can be taken into process for understanding the process taken
into consideration for carrying out the research. For recent study the focus has been provided on having utilization of inductive
approach so that appropriate conducting of research can be exerted. There are two form of philosophies such as Interpretivism and

positivism which aids in meeting objectives in accurate manner. Interpretivism is suitable in order to asses the impact of traditional
budgetary control on profitability of specified organization.
Sampling Procedure
Sampling is basically selection of group from the total population in order to collect the accurate and reliable data from
suitable people. There are different kinds of the technique which can be taken into procedure for collecting data from the sampling
size that involve probability and non probabilistic. In order to collect the data from the selected groups such as CFO, production, sales,
procedure manager and CEO. These have been selected by simple random sampling technique which is part of probability precise
views and opinion regarding the impact of traditional budgeting on profitability can be ascertained. This is helpful in gaining the non
bias information in respect to get the significant ability to evaluate impact of traditional budgetary control on profitability of
mentioned enterprise. In order to conduct the research in highly effective manner utilization of simple random sampling aids scholar to
ensure that bias based behavior can be avoided. The main reason behind such benefit is that there is involvement of selecting
participants on random basis via eliminating aspect of giving preference to anyone. This contributes in achieving relevant information
about the prevailing circumstance so that meeting objectives and assessing answer to research questions can be done.
Conceptual Framework
Has impact on
organizational
efficiency &
effectiveness
Traditional budgetary control
Have
influence on
profitability Change
Factors
 Lack of Planning
 Lack of co–
ordination and
management
 Monitoring the
Financial
condition

Budgetary control (dependent variable)
On the basis of the above prepared conceptual framework it can be identified that these are the main causes which is leading
to impact the budgetary control. This is affecting the profitability of XYZ in adverse manner. It is important in gaining significant
knowledge about the aspects regarding which are the root causes that is impacting traditional budgetary control and affecting the
profitability of enterprise . In order to get accurate ability to influence profitability in positive pattern it is important to give focus on
these aspects so that higher ability to get positive outcomes can become possible. The reason behind considering these as lacking
aspect as ineffective planning coordination & management and irrelevant level of monitoring hampers functioning of enterprise.
Qualitative Research – Factor Definition
Factors Phenomenon
 Lack of Planning This can be measured by ability of firm to
conduct operational practices
 Lack of co–ordination and management level of outcome derived on profitability
Impacts

 Monitoring the budget Improvement actions conducted.
Data and Data collection
Data collection is gathering the information for attaining the research questions in effective manner in turn reliable
formulation of study can become possible. There are two ways in which data is collected such as primary and secondary that permit
receiving significant level of data in turn attaining objectives can become possible. The primary method is related with gathering
information particular for the specific topic which has not been utilized before. This can be done via using methods such as
questionnaire, interview, observation n and focus group. For the present research report, researcher has paid attention on spreading
questionnaire to the selected sampling size in respect to gain insights about their views, opinion and experience regarding impact of
traditional budgetary control on profitability of firm. Secondary research is associated with using articles, journals and books in turn
ability to support the collected data can become possible. These both specified method has been helpful in meeting the objectives of
achieving relevant and reliable information to conduct study.
Data analysing methods and techniques
For the purpose of analyzing the data, there are two ways of the techniques which is widely taken into procedure by the
scholar that comprises thematic sampling technique and SPSS. For the qualitative study the thematic perception test technique is
suitable which is related with referring to the response gathered through survey, graphical presentation so that findings can be
supported to LR. On the other side, SPSS is used for having descriptive statistics, regression, correlation, etc. in addition to this, it
can be interpreted that current study has taken thematic analysis into consideration for achieving appropriate information in tun better
reliable formulation of report has become possible.
Ethical consideration

There are various ethical requirements which are required to be taken into consideration by the researcher in respect to give
emphasis on developing fair research. For this purpose the consent form has been signed by the targeted audience. Data has not been
copied and maintained privacy details of targeted audience. This has lead to conduct fair & reliable study to meet objectives.
Reliability and validity
For maintaining the reliability & validity of the research scholar has given emphasis on using the latest sources, no alteration in
data gathered, and copy right sources utilization. This is helpful in making the significant report in turn achieving appropriate
knowledge to meet aim of study has become possible
Research limitation
The research limitations comprise time, access to resources and availability of limited monetary source. This has been highly
considered by scholar for meeting accurate knowledge via ensuring optimum utilization of resources o that better outcomes can be
offered.

CHAPTER 4: DATA ANALYSIS
Reliability test
Case Processing Summary
N %
Cases
Valid 100 100.0
Excludeda 0 .0
Total 100 100.0
a. Listwise deletion based on all variables in
the procedure.
Reliability Statistics
Cronbach's
Alpha
N of Items
.725 12
Statistics

Q1. Are
you
aware of
using the
concept
of
budgeting
within the
business?
Q2. Does
your
company
undertake
the use of
budgeting
for making
the future
projection?
Q3. What
does
traditional
budgeting
involve?
Q4. Why
is it
important
to have
budgetary
control
within the
company?
Q5. What
is the
impact of
using the
budgeting
system
over the
company
and its
efficiency?
Q6. What
are the
benefits
of using
traditional
budgeting
system?
Q7. Is
there any
drawback
of using
the
traditional
budgeting
methods?
Q8. From
the
following
what are
the
different
drawback
which
company
faces by
using
traditional
budgeting
system?
Q9.
Which
method of
budgeting
is better
from the
following?
Q10. In
case
company
undertakes
the use of
modern
budget,
then what
is the
impact over
the
profitability
of
company?
Q11. Do the
modern
budgeting
tools assist in
keeping
proper track
of
expenditure
and reduce
the variance
in actual and
budgeted
performance?
Q12. What
are the
benefits of
using the
modern
budgeting
tools and
techniques?
N Valid 100 100 100 100 100 100 100 100 100 100 100 100
Missing 0 0 0 0 0 0 0 0 0 0 0 0
Mean 1.4400 2.9700 1.5400 2.7000 1.4600 1.7800 1.4400 2.7200 2.3700 1.6400 1.4400 2.7000
Median 1.0000 2.5000 1.0000 3.0000 1.0000 2.0000 1.0000 3.0000 2.000 2.0000 1.0000 3.0000
Mode 1.00 2.00 1.00 4.00 1.00 1.00 1.00 4.00 2.00 1.00 1.00 4.00
Std.
Deviation .49889 1.39592 .67300 1.13262 .50091 .92747 .49889 1.15540 .97084 .67450 .49889 1.13262
With the help of the above descriptive statistics it is clear that there are 100 sample who have answered the questionnaire. With this
analysis it is clear that on an average majority of people are having awareness relating to the budgeting within the company. also, it is
evaluated that company is undertaking the use of budgeting to forecast and measure the performance of the company. further it was
analysed that for using the traditional budgeting the use of past data is undertaken for the preparation of the budget. Moreover, it was
evaluated that on an average most of the people states that traditional budgeting has less impact over the profitability as there are many

drawbacks of using the traditional budgeting. Moreover, descriptive statistics stated that the most frequently used budgeting tool is
the zero based budgeting.
Frequency Table
Q1. Are you aware of using the concept of budgeting within the business?
Frequency Percent
Valid
Yes 56 56.0
No 44 44.0
Total 100 100.0

Interpretation- with the analysis of the above primary data gathered it is clear that there is awareness present relating to the concept of
budgeting. This was agreed by majority of respondent that is 56 % that they are aware of the concept. However, the remaining
respondent that is 44% states that there is no awareness relating to the concept of budgeting.

Q2. Does your company undertake the use of budgeting for making the future projection?
Frequency Percent
Valid
Strongly agree 14 14.0
Agree 36 36.0
Neutral 9 9.0
Strongly degree 21 21.0
Disagree 20 20.0
Total 100 100.0

Interpretation- by evaluating the primary responses of 100 respondents it was clear that most of the participant agreed that company is
using the budgeting tools and techniques for making the performance better. This was agreed by 36 % of the sample and 14 %
strongly agreed. On the other hand, the remaining respondent were either neutral, disagree or strongly disagree.

Q3. What does traditional budgeting involve?
Frequency Percent
Valid
Taking past data before
making budget 56 56.0
Starting from scratch 34 34.0
Considering market
changes 10 10.0
Total 100 100.0

Interpretation- with the analysis of the primary data gathered with help of questionnaire it was analysed that traditional budgeting
involves taking into consideration the past data before make the budget. This is particularly because of the reason that under the
traditional method it is based on evaluating the past data and trends and then try to forecast the future working. However, on the other
side remaining respondent stated that either starting from scratch or considering market changes is involved within traditional

budgeting. But as per the views of Santos Ospina, (2020) these two element are included in the zero based budgeting and other tool of
modern budgeting.
Q4. Why is it important to have budgetary control within the company?
Frequency Percent
Valid
It assists in reducing
irrelevant expenses 18 18.0
Promotes coordination
among different department 29 29.0
Facilitate centralized control 18 18.0
All of the above 35 35.0
Total 100 100.0

Interpretation- by analyzing the above data it is clear the budgetary control is very important for the company. This was agreed by
35% of the participant that all of the above includes the importance of budgetary control. All of the above involves the importance like
assist in reducing irrelevant expenses, promotes coordination and facilitating centralized control. However, the remaining respondents
agree to these factors individually.

Q5. What is the impact of using the budgeting system over the company and its efficiency?
Frequency Percent
Valid
Positive 54 54.0
Negative 46 46.0
Total 100 100.0

Interpretation- with the analysis of the above data it is clear that impact of using the traditional budgeting system is positive. This was
agreed by 54 % of people and they think that use of budgeting assist the company in setting target and this improves the working
efficiency of the company. on the other side, remaining respondent does not agree with this and states that there is negative impact of
using traditional budgeting system.
Q6. What are the benefits of using traditional budgeting system?
Frequency Percent
Valid
Easy to implement 47 47.0
Provide opportunity to
consolidate project into
single larger one
37 37.0
Encourages decentralization 7 7.0
All of the above 9 9.0
Total 100 100.0

Interpretation- on the evaluation of the primary data gathered with help of questionnaire it is clear that there are different benefits
relating to the traditional budgeting system. As per the views of majority people that is 47 % the easy implementation is the most
common benefit. This is particularly because of the reason that use of traditional method involves taking past year data and making

budget. However, the remaining people stated that encouraging decentralization and providing opportunity to consolidate project into
single project.
Q7. Is there any drawback of using the traditional budgeting methods?
Frequency Percent
Valid
Yes 56 56.0
No 44 44.0
Total 100 100.0

Interpretation- with the above analysis it is clear that there are also some drawbacks relating to the traditional budgeting system. This
is particularly agreed by 56 % of the respondent and remaining disagreed.
Q8. From the following what are the different drawback which company faces by using traditional budgeting system?

Frequency Percent
Valid
Lack of planning 19 19.0
Lack of coordination and
management 27 27.0
Monitoring the budget 17 17.0
All of the above 37 37.0
Total 100 100.0

Interpretation- with the analysis of the primary responses gathered from 100 respondents it is clear that there are different drawbacks
which company face because of use of traditional budgeting. This was agreed by 63 % that all of the above are the major drawback.
This all of the above involves lack of planning, lack of coordination and management and monitoring the budget. However, the rest of
the participant agreed to these drawbacks on individual basis.

Q9. Which method of budgeting is better from the following?
Frequency Percent
Valid
Incremental
budgeting 14 14.0
Zero based budgeting 56 56.0
Activity based
budgeting 9 9.0
All of the above 21 21.0
Total 100 100.0

Interpretation- with the evaluation it can be interpreted that there is higher emphasis has been provided on zero based budgeting as 56
selected people have voted. On the other side, incremental budgeting, activity based budgeting and all the above options has been
chosen by 14, 9 and 21 respondents respectively.
Q10. In case company undertakes the use of modern budget, then what is the impact over the profitability of company?
Frequency Percent
Valid
Increase in profits 57 57.0
Decline in profit 31 31.0
No impact on profit 12 12.0
Total 100 100.0

Interpretation- From the evaluation of the graphical presentation it can be interpreted that there is higher level of focus by 57% of
respondents has given on increase in profitability. In addition to this, decline in profit and no impact on profit have been chosen by
31% and 12% of participants respectively.

Q11. Do the modern budgeting tools assist in keeping proper track of expenditure and reduce the variance in actual and budgeted
performance?
Frequency Percent
Valid
Yes 57 57.0
No 43 43.0
Total 100 100.0

Interpretation- it can be identified that selected sampling size has chosen yes category. This indicates that modern budgeting tools
helps in keeping proper track of cost h an declining deviation in n budgeted and actual performance. On the other side, 43 respondents
has not supported this stated and selected no option. This his helpful in understanding that large portion of selected size of sample is
supporting modern budgeting technique.

Q12. What are the benefits of using the modern budgeting tools and techniques?
Frequency Percent
Valid
Provides accuracy and
efficiency 19 19.0
Includes every change in
other factors 27 27.0
Reduction in redundant
activity 17 17.0
All of the above 37 37.0
Total 100 100.0

Interpretation- from the assessment it can be interpreted that respondents has chosen all option by 3 people out of the 100. This
involves providing accuracy & efficiency, involving every change in other elements and reducing irrelevant practices. This is
indicating that these all are the benefits of modem budgeting tools & techniques.

Regression
H0- There is not any significant relation being present in awareness relating to budgeting and impact over profitability of company.
H1- There is a significant relation being present in the awareness relating to budgeting and the impact over profitability of the
company.
Model Summary
Model R R Square Adjusted R
Square
Std. Error of the
Estimate
1 .536a .287 .280 .57253
a. Predictors: (Constant), Q1. Are you aware of using the concept of
budgeting within the business?
ANOVAa
Model Sum of Squares df Mean Square F Sig.
1
Regression 12.917 1 12.917 39.405 .000b
Residual 32.123 98 .328
Total 45.040 99
a. Dependent Variable: Q10. In case company undertakes the use of modern budget, then
what is the impact over the profitability of company?
b. Predictors: (Constant), Q1. Are you aware of using the concept of budgeting within the
business?

Coefficientsa
Model Unstandardized Coefficients Standardized
Coefficients
t Sig.
B Std. Error Beta
1
(Constant) .597 .176 3.401 .001
Q1. Are you aware of using
the concept of budgeting
within the business?
.724 .115 .536 6.277 .000
a. Dependent Variable: Q10. In case company undertakes the use of modern budget, then what is the impact
over the profitability of company?
With the analysis of the data relating to regression it is clear that the R of both the variable is 53.6 % which implies the both
the variable are moderately correlated with one another. In addition to this, the R square is 28.7 % which states that any change within
the independent factor causes a 28.76% change in the dependent factor. Along with this it is clear that the significance value is 0.000
which is less than the standard p value that is 0.05. This simply means that the alternate hypothesis is proved as the significance value
is less than the standard. Also, in support of this Dokulil, Popesko and Kadalová (2022) states that when there will be proper
awareness relating to the budgeting method then only the proper method will be used. Also, when the appropriate method is used then
this will result in increase in profitability of the company. the reason underlying this fact is that when the budget will be prepared in

correct manner then this will be affecting the working efficiency of employees as this will be providing a base to the employees that
how the expenditure need to be managed in order to increase profitability.
CHAPTER 5: CONCLUSION AND RECOMMENDATIONS
Summary of the study
The current study is helpful in understanding the impact of traditional budgetary control on profitability as it is unable
planning, controlling, etc of monetary resources. It has been identified that there are two objectives which has been accomplished in
the research which comprises assessing impact of budgetary control over the revenue system and influence of expenses through
mentioned budgetary control. From the evaluation of the literature review it can be interpreted that there are different outcomes that
has been derived which involves identification of the root cause behind the budgetary control. This comprises lack of planning,
ineffective coordination & management and monitoring the budget. This leads to ensure that there is requirement of having effective
budgetary control in turn elimination of lacking areas to derive significant outcomes. Research methodology has helped to understood
that how procedure of conducting study has been executed. This involves utilization of qualitative research type, Interpretivism
philosophy, inductive approach, primary & secondary data collection, thematic analysis technique, etc which is contributing in
attaining reliable study.
Conclusion
From the above report it can b concluded that traditional budgetary control play crucial role in impacting the profitability of
specified organization. The current study has involved formulation of objective and research questions that has helped in gaining
appropriate ability to carry out research. Literature review & research methodology has been involved to understand theoretical
framework and procedure for continuing study. It can be articulated that there is negative impact of traditional budgeting is found on
profitability of the organization.
Discussion

From the evaluation it can be interpreted that targeted audience aware of the concept of budgeting. For making future
projections there is involvement of budgeting practicing in the company has respondents have agreed. It can be supported by referring
opinion of Santos Ospina, (2020) that there are different kinds of the organizational activities which are required to be manged in
order to gain success. This can be effectively done by understanding the significance of budgeting which aids in managing all
operational activities to receive higher benefits.
On the basis of evaluation, it can be discussed that traditional budgeting is considered to be taking past data before
formulation of budgeting. It can be justified by paying attention on opinion of Berland,Curtis and Sponem (2018) that traditional
budgeting control is basically associated with referring historical figures for evaluating the future requirements of business. There is
involvement of predicting revenue and expenses based on the previous performance which does not lead the firm to coordinate with
changing circumstances. In the current era, utilization of particular budget method affects the functioning of firm.
There are various types of the reasons for which having budgetary control into the process of firm is considered to be
important in turn various objectives accomplishing can become possible. The respondents have chosen all the above option which
comprises assists in reducing irrelevant expenditure, promotes coordination among different department and facilitating centralized
control. This can be justified via looking at opinion of Dahal (2021) there are different kinds of the benefits which can be derived by
applying the budgetary control that aids in meeting the overall planning, help in eliminating irrelevant cots incurring parts, gaining
ability to set coordination among all the functional areas, etc so that profitability can be inclined.
Impact of the budgeting on the business is found to be positive which helps in receiving various distinct competitive edge.
This can be validated by views of Boyns (2022) that there are distinct roles of budgeting which provides assistance in meeting the
requirements of enterprise such as forecasting expense, revenue, restricting irrelevant expenditure, etc. These all permits firm to gain
the positive impact in turn accomplishing overall organizational objectives can become possible.
The main benefit that has been identified by applying the traditional budgeting which involves easy implementation. There is
lacking areas of traditional budgeting control that has influence on functioning of firm. The lacking areas that are faced by firm due to

traditional budgeting includes lack of planning, coordination & management and motoring control. This can be justified by looking at
the opinion of Magni, Marchioni and Baschieri, (2022) that in order to become successful in the current competitive environment
there is need to focus on the limitations of traditional budgeting as it highly affect efficiency of the enterprise. On the basis of this, it
can be specified that traditional budgeting negatively impart firm's performance.
From the assessment it can be stated that zero based budgeting is one of the crucial method that is highly utilized in the
current times and found to be one of the significant budgeting. Modern budget inclines profitability, proper tracking of expenses and
mitigating cost, etc which benefits firm to have accuracy & efficiency and changing in other factors. This can be justified by viewing
opinion of Macak (2022) that there are various benefits of the zero based budgeting that comprises building cost benefit analysis.,
resource allocation effectively, optimum utilization of resources, etc. these all permit the firm to gain the appropriate position to
achieve competitiveness. On the basis of this, it can be said that modern budgeting is beneficial.
Recommendations
It is recommended to the specified organization to pay attention on using the flexible budgeting. The main reason behind the
application of the flexibility budgeting is that it allows to offer the ability to the organization to gain significant adjusts to the activity
of organization. It basically helps in gaining appropriate position to effectively coordinate with the changing circumstances in turn
better processing to deal with prevailing requirements can become possible. This can allow effectively to set coordination in
management in turn monitoring the circumstances properly in respect to achieve higher profitability can be done.
This is suggested to XYZ Ltd to apply activity based budgeting that can help the firm to have system m that can record, research,
analyse the activities which are leading cost to the organization. There are different form of the benefits which can be received by
enterprise that involves evaluation of aspects, gaining competitive edge, eliminating bottlenecks and having improved relationships.
This all can help the business to achieve proper level of receive greater planning for profitability & sustainability.
Zero based budgeting execution can be beneficial for the specified enterprise in order to receive such aspects that can contribute in
making budget from scratch. This a provides assistance in receiving position to cope up wit changing needs of business that can lead

fir towards success. There are various objectives which as reducing cost, having greater profitability margin, etc. can become possible
via using this budgetary method.
What is the
recommendation
What activities
you need to
carry out
Responsibility
of whom
Time
Period
Resource
Requirement
flexible budgeting Changing with
circumstances
manager 2 month Expertise
knowledge
possessing
employees
activity based
budgeting
Identification of
cost incurring
activities
manager 1 month Expertise
knowledge
possessing
employees
Zero based
budgeting
Preparing from
scratch
manager 1 month Expertise
knowledge
possessing
employees
Limitations of the study & recommendations of future studies
The limitation of the study can be identified that limited time, access to resources and financial aspects. The other limitation
that involve not suitable for ll companies and useful for selective firms. This has been properly dealt via having significant compliance
with requirements such as optimum utilization of resource such as time, money, etc. so that quality performance can be derived. The
recommendations for future studies includes having application of quantitative study via covering greater sampling size so that

detailed view can be gathered. Using deductive approach and positivism philosophy can provide assistance in gaining greater reliable
outcomes. This can provide assistance in conducting future studies in more effectual pattern.

REFERENCES
Books and Journals
Berland, N., Curtis, E. and Sponem, S., 2018. Exposing organizational tensions with a non-Traditional budgeting system. Journal of
Applied Accounting Research.
Boyns, T., 2022. Organizational change, budgetary control and success and failure in Formula 1: Rubery Owen and British Racing
Motors, 1947–1977. Management & Organizational History. pp.1-24.
Dahal, R.K., 2021. TRADITIONAL VS CONTEMPORARY MANAGEMENT ACCOUNTING TECHNIQUES IN THE
NEPALESE MANUFACTURING COMPANIES. Journal of Management Information & Decision Sciences. 24(5).
Dokulil, J., Popesko, B. and Kadalová, K., 2022. Factors With a Major Effect on the Budgetary Control Process–An Empirical Study
From the Czech Republic. Amfiteatru Economic, 24(59), pp.236-250.
Macak, T., 2022. Financial Stability Control for Business Sustainability: A Case Study from Food Production. Mathematics, 10(3),
p.292.
Magni, C.A., Marchioni, A. and Baschieri, D., 2022. Impact of financing and payout policy on the economic profitability of solar
photovoltaic plants. International Journal of Production Economics. 244. p.108338.
Santos Ospina, A. C., 2020. New development: Budgetary accounting in Colombia—arguments for a much-needed reform. Public
Money & Management, 40(7), pp.523-526.
Santos Ospina, A.C., 2020. New development: Budgetary accounting in Colombia—arguments for a much-needed reform. Public
Money & Management. 40(7). pp.523-526.

APPENDIX
Questionnaire
Name:
Age:
Gender:
Q1. Are you aware of using the concept of budgeting within the business?
 Yes
 No
Q2. Does your company undertake the use of budgeting for making the future projection?
 Strongly agree
 Agree
 Neutral
 Strongly disagree
 Disagree
Q3. What does traditional budgeting involve?
 Taking past data before making budget
 Starting from scratch
 Considering market changes
Q4. Why is it important to have budgetary control within the company?
 It assists in reducing irrelevant expenses
 Promotes coordination among different department
 Facilitate centralized control

 All of the above
Q5. What is the impact of using the traditional budgeting system over the company and its
efficiency?
 Positive
 Negative
Q6. What are the benefits of using traditional budgeting system?
 Easy to implement
 Provide opportunity to consolidate project into single larger one
 Encourages decentralization
 All of the above
Q7. Is there any drawback of using the traditional budgeting methods?
 Yes
 No
Q8. From the following what are the different drawback which company faces by using
traditional budgeting system?
 Lack of planning
 Lack of coordination and management
 Monitoring the budget
 All of the above
Q9. Which method of budgeting is better from the following?
 Incremental budgeting
 Activity based budgeting

 Zero based budgeting
 All of the above
Q10. In case company undertakes the use of modern budget, then what is the impact over the
profitability of company?
 Increase in profits
 Decline in profit
 No impact on profit
Q11. Do the modern budgeting tools assist in keeping proper track of expenditure and reduce the
variance in actual and budgeted performance?
 Yes
 No
Q12. What are the benefits of using the modern budgeting tools and techniques?
 Provides accuracy and efficiency
 Includes every change in other factors
 Reduction in redundant activity
 All of the above
Q13. What are some suggestion for improving the budgetary control in increasing profitability of
company?