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Submitted By okaro
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CHAPTER ONE
INTRODUCTION
1.0 PREAMBLE One constant variable that permeates through man’s entire life is uncertainty. Uncertainty and man are inseparable. As man builds organizations and institutions that he utilizes to make his existence easier, uncertainties also creep into these organizations and institutions. All human transactions carry these uncertainty traits. These transactions are many and varied but arise essentially, as stated above, as inherently of man and the institution created by him. One of the ways man has tried to manage and control the damaging effects of uncertainty in his institution especially as it relates to his financial transaction in use of budget. These are many varied definitions of budget, according to Obazele (2000:127)in his book titled Accounting for public sector Activities in Nigeria. Budget is defined as a “statement whish express future plans in financial terms.” It is also defined by Okoye (1979: 301). In his book titled Cost Accounting Management Operational Application, as “plans prepared and approved before The of use. A budget is defined in the institution of cost and management Accounting, 1966 edited of Terminology as a financial and/or quantitative statement prepared and approved prior to a defined period of the policy to be pursued during that period for the purpose of attaining a given objective”. Going by the above definitions of budget by previous authors, it could be deduced that a budget as an element of control in it. Control here means a “standard of comparison for checking an experiment which result is known” (Horby : 2000 page 251). Budgetary control according to Pickles and Lafferty (1974:3145) relate to “the use of budgets as control devices whereby predetermined plans or standard, output, income and expenditure are compared with actual attained so that, if necessary corrective action may be taken...

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