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1.2 REVIEW OF LITERATURE:An Examination of the Effects of Budgetary Control

on PerformanceNovember, 2007Carolyn M. Callahan,Doris M. Cook Professor,Tammy R. Way mire,University of Arkansas-

Fayetteville.Th i s s tu dy rep res ent s the f i r s t whi ch su gge s t s tha t t igh t

b u d g e t a r y c o n t r o l m a y n o t b e a s e f f e c t i v e i n i m p r o v i n g p e r f o r m a n c e a s

as su me d bo th in p ub li c s ec to r an d p ri va te s ec to r entities. While it would bepremature to conclude that tight budgetary control is not related toPerformance, it can

be concluded that the effective

level of budgetary control will vary basedon contextual factors. In this study, it

appear s t hat the eff ect ive level of bud getary con tro l i s at the net level for the funds

within governmental entities.B u d g e t a n d B u d g e t a r y C o n t r o l f o r I m p r o v e d P e r f o r m a n c e : A C o n s i d

e r a t i o n f o r Selected Food and Beverages Companies in NigeriaIshola Rufus AkintoyeDepartment of Economics, Faculty of the Social Sciences,University of

Ibadan, Oyo State, Nigeria, West Africa.This study examines how budget and budgetary control

can impact on the performance of theselected food and beverages companies in Nigeria, asconsidered in this study, being a sampleof the entire population of the firms in the Nigerian

Manufacturing Industry. We reviewed the performance of the Nigeria manufacturing

indust ry in previous and recent times. We foundou t th at th e pe rfo rm an ce of

t h i s i n d u s t r y l e a v e s m u c h t o b e d e s i r e d d u e t o f a c t o r s s u c h

a s n e g l e c t o f t h e i n d u s t r y d u e t o o v e r d e p e n d e n c e o n c r u d e o i l , e

p i l e p t i c p o w e r s u p p l y , col laps ing inf rast ructures , unfavorable sec tora l

reforming among others and have resulted

in l o w c a p a c i t y u t i l i z a t i o n o f t h e m a n u f a c t u r i n g i n d u s t r y . A n e m p i r i c a l i

nv es ti ga ti on wa sundertaken, using the simple correlation analytics technique

specifically the Pearson productmovement correlation coefficient. In most of cases

considered, established the presence of strong relationship between turnover as a

variable of budget and performance indicators EPS, DPS and NAS, of the

selected food and beverages companies. Following our findings,we advise

managers and business operators to pay more attention to their budgetary control

9systems, for those without an existing budgetary control system, they should put one in

place,and those with a dumm y or passive budgetary cont rol system, it is time they

re-es tabl ished are s u l t -

o r i e n t e d b u d g e t a r y c o n t r o l s y s t e m a s i t g o e s a l o n g w a y i n r e p o

s i t i o n i n g t h e manufacturing industry from its creeping performance level to an

improved high cap aci tyutilization poin