Every business firm normally will like to know how it performed over a period of times, thus leading to the preparation of profit and loss statement. They also ask about their position at a particular point in time which leads them to prepare balance sheet. Finally, they will like to know where they are heading, which has led to the preparation of budgets.
Budget is term used locally by a lay man. Lay man confuse budgeting with planning. A budget is part of a plan. A plan can be expressed in monetary and non-monetary term. Any plan that is qualified in monetary term is a budget. A budget, therefore, can be succulently defined as a statement of intention qualified in monetary term.
In budgeting there are types of budget prepared by firms. Such budgets includes capital budgets, cash budgets, sales budget and so on.
The process of preparing capital budget is called capital budgeting. Capital budgets are long term budgets made for acquisition and expansion of fixed assets. Capital budgets are prepared by many films today. It was originated in the United States of America (USA). In America it was applied by firms before the second world war.
After the second world war many firms saw the need to plan for capital expenditure, hence it is prevalence today.
Nigerian breweries limited, Monarch larger beer and other beverages, are not left out in the train of firms which prepare budgets for its capital expenditure. this is, however, not easy as it is fraught with a lot of problems.
TABLE OF CONTENTS
Title Page II
Table of contents IX
1.1Problem statement 2
1.3Limitations of study 8
1.4Significance of study 9
1.5Definition of terms 12
2.1Ranking investment proposal 14
2.2Post auditing of the investment decision 17
2.3Analysis of capital projects 19
2.4Capital rationing 35
Research methodology and designation
3.1Sources of data 55
Case study and analysis of data and presentation
4.1Profile of Diamond breweries limited 61
4.2Organisational structure with special –
Summary of findings, recommendation and conclusion
5.1Summary of findings 75
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