ABSTRACT
The research focuses on as assessment of planning and control of capital expenditure in a business organization, a case study of global soap and detergent company, ljebu- ode, Ogun- state. The major objective of the study is to determine the application of planning and control have any effect on capital expenditure in a business organization, to examine the relationship between planning and control being adopted on capital expenditure in a business organization.
Data were collected through primary source. The descriptive survey method was used and the research tool was questionnaire. Total of thirty five (35) respondents were obtained using random sampling technique and thirty (30) questionnaires were answered and return. Data analysis and presentation was done by the used of tables.
The major findings from the organization are: planning and control is the backbone for every organization and planning and control help the organization to invest on long terms asset in other to have more profitability for their business. Planning and control have no significant effect in every organization, because planning and control determine the profitability for business organization to invest on. On the basis of the above findings; the study concludes that planning and control on capital expenditure help the business organization to invest in long terms asset and also help business organization to growth. Poor planning and control on capital expenditure will prove disastrous for the continued survival of the firm. Unwanted or unprofitable expansion of assets will result in heavy operating control of the firm. Also, inadequate investment in asset would have it difficult for the firm to complete successfully and maintain its market share.
The following recommendations are the approving authority for various project should be weighed according to the sum involved. That is, instead of a situation where only the board that approve every projects, the head of each department and the management could be allowed to approves some projects when the amount are not too much. Each heads of departments should assist the accountant by providing the necessary data that will help to plan for the accountant to give he/she period reports on progress and cost of the company projects. The supervising accountant should be made to give periodic report on the on-going projects. This will allow proper assessment and assessment of situation. Every relevant department and personnel should be carried along inception of the company’s project. This will allow for easy monitoring and co-ordination.
Keywords: Audit, Budget, Control, Expenditure, Planning.
TABLE OF CONTENT
Title Page i
Certification ii
Dedication iii
Acknowledgement iv
Abstract v
Table of content vi
CHAPTER ONE: INTRODUCTION
1.1 Background to the Study 1
1.2 Statement of the Problem 2
1.3 Objective of the Study 3
1.4 Research Questions 3
1.5 Research Hypothesis 3
1.6 Significance of the Study 4
1.7 Scope of the Study 4
1.8 Definition of Terms 4
CHAPTER TWO: LITERATURE REVIEW
2.1.1 Planning on Capital Expenditure 6
2.1.2 Control on Capital Expenditure 6
2.1.3 Steps Involved in Planning 7
2.1.4 Controls and Coordination in Business Organization 7
2.1.5 Important of Effective Control Procedures 8
2.1.6 Planning and Control over Capital Expenditure 8
2.1.7 Capital Expenditure 9
2.1.8 Difference between Capital Budget and Operating Budget on Capital
Expenditure 9
2.1.9 Capital Expenditure Project 10
2.1.10 Investment Authorization of Capital Expenditure 10
2.1.11 Post Investment Audit on Capital Expenditure 10
2.1.12 Post Completion Audit on Capital Expenditure 11
2.2 Theoretical Review 11
2.2.1 Stakeholder Theory 11
2.2.2 Stewardship Theory 12
2.2.3 Utility Theory 14
2.2.4 Quantity Theory of Money 15
2.3 Literature of the Subject Matter 16
2.4 Gap in Literature 19
CHAPTER THREE: METHODOLOGY
3.0 Introduction 20
3.1 Research Design 20
3.2 Study Area 20
3.3 Population 20
3.4 Sample and Sampling Technique 20
3.5 Method of Data Collection 21
3.5.1 Primary Data 21
3.6 Method of Data Analysis 21
3.7 Operationalization of Variable 21
3.8 Model Specification 22
3.8.1 Regression Model 22
3.9 Limitation of the Study 23
CHAPTER FOUR: DATA ANALYSIS AND PRESENTATION
4.0 Introduction 24
4.1 Data Presentation and Analysis 24
4.2 Test of Hypothesis 31
4.3 Discussion of Findings 35
CHAPTER FIVE: SUMMARY, CONCLUSION AND RECOMMENDATIONS
5.1 Summary 36
5.2 Conclusion 36
5.3 Recommendation 38
