Hypotheses *SUPPORTING INFOS

For planning and org performance :

It is evident that profitability is part of financial indicators employed by the firm, this could be
because achieving the target in the firm depicts a picture of a firms that is determined to attain
maximum profits and has put up necessary measures to ensure they perform hence it is a
financial indicator.

These findings are in line with Oden (2010) findings that note that despite firms employing
different ways to measure their performance, profitability if correctly done can be an effective
measure of financial performance but he notes that the firm has more wealth than just the
tangible wealth and consequently other ways of measuring performance should also be
explored in the process.

For Control & Performance

Jacobs (2003) spoke out that operational management needs to know the causes of off-
standard performance in order to improve operations. The knowledge of variances (real result
versus budget) will aid control, at least if and when these variances are understood well enough.
A deeper understanding of the state of the company is the ultimate goal of all representations in
budgeting and budgetary control. Management's task is to find the reasons for the variances
and to take proper action to bring operations into line with the budget. In some cases, the
variances and trends might indicate that the standards need amendment.

Additional Bibliography

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Economies: A Study from Nigeria. Department of Accounting and Finance, University of Ilorin,
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exploratory study. Accounting, Organizations and Society (Ottawa: DC Canada Educational
Publishers).

Boyne, G. A and Chen, A. A. (2007) Performance targets and public service improvement,
Journal of Public Administration Research and Theory, Vol.17, Iss.3, pp 455-477.

Chin, Y (2005) The current situation of the performance management system in Korea,
presented to a symposium hosted by the Audit and Inspection Research Institute.

Davila R.K. (2006): Management control systems design within its organizational context:
Findings from contingency-based research and directions for the future. Accounting,
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Hansen, S., Otley, D., Van der Stede, W., (2003). Practice developments in budgeting: an
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Jacobs, Jan F., Budgeting and Budgetary Control (April 29, 2003). Available at SSRN:
https://ssrn.com/abstract=400120 or http://dx.doi.org/10.2139/ssrn.400120

Jensen, M.C. (2003). Paying People to Lie: The Truth About the Budgeting Process, European
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Oak, S. & Schmidgall, R. S. (2009). Have budgetary controls in the US club industry changed
from the mid-1980s to the twenty-first century? International Journal of Contemporary
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Su, S., Baird, K., & Schoch, H. (2014). The moderating effect of organizational life cycle stages
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Uyar, A. & Bilgin, N. (2011). Budgeting practices in the turkish hospitality industry: An
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