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Variance Analysis As A Tool For Effective Planning Accounting Essay

Abstract This project analysis the significance of variance analysis as a tool for effective planning in flour mills industries the project view planning variance analysis and standard costing primary and secondary are used. The use of primary data was heavily relied upon via questionnaire administered, the research adopt simple percentage in testing research Hypothesis.
The finding of the project show the significant variance analysis in providing information to management to meet the objectives of an organisation. On the basis of the findings the projects finally offered some recommendation aimed at improving the efficiency and effectiveness of variance analysis information.
table of contents Title page
Declaration page
Approval page
Dedication page
Table of content
Chapter one introduction
General background of the study
Statement of the problem
Objectives of the study
Research hypothesis
Significance of the study
Scope of the study
Limitation of the study
Definition of key terms
Chapter two Literature review
Variance analysis
The purpose of variance analysis
Responsibility for variance
Making variance analysis more useful
2.5.1 Types of planning
2.5.2 Long term (strategic) planning
2.5.3 short term (tactical) planning
Standard costing
2.8.1 the basic steps involved in standard costing techniques
2.8.2 objectives of standard costing
2.8.3 the benefits of standard costing
chapter three Research methodology Introduction
Population of the study
Sample size
Sampling technique used
Method of data collection
Method of data analysis
Chapter four Introduction
Data presentation
Data analysis
Test of research hypothesis
Chapter five Summary
Conclusion (findings)
Chapter one General background of the study introduction The survival of any organisation is dependent upon its decision to achieve its desired objectives. A definitive guide to management decision is information. Manage net need information for planning a2nd control for decision making.
“Accounting is of great importance to all levels of man agement and without accounting there would be stagnation and confusion which in extreme cases may lead to a complete break down of the system”.
(Kalu, 2002) in todays business environment, the development and use of information especially management accenting information is a critical factor in the effective management of an organisation.
Management inform nation is not only concerned with the provision of financial information about cost and revenve it is also in response to the changing environment involved in the provision of non-financial information about productivity quality and other key success factors for the organisation.
To ensure effective use of vaciance /analysis for planning the information provided by the management accounting system must be relevant, timely, complete, reliable, objective and under stardable amongst others.
Statement of problem Effective planning of variance analysis has been playing a greater role as a tool of corporate survival especially in the present day complex business environment where having the best information is the key to success.
Therefore the problem of the research work includes Non-Implementation variance analysis which may cause in effective planning in the flour mills industries. These problem necessitate the flour mills industries.
objectives of the study The following are the objective with the study was conducted.
To analysis how variance analysis assist in effective planning,
that is how it helps in determining future prospers and objectives.
To examines the efficiency and effectiveness of variance analysis. By looking into how it maximized wealth or production and minimizes wastage for the producing of expected out put and achievement of desire objective of the organisation.
Research hypothesis For the power of this research, the following hypothesis were formulated and tested,
H0 valance analysis would serve as a tool for effective planning.
H1 valance analysis would serve a tool for effectine planning
Significant of the study The significance of the study includes:-
(To provide a successful way in which management would achieve their organisational objective through proper planning and sound control in the process of making decision by careful forecasting of future objective and maximizing or boosting of out put and avoiding or minimizing was tape for the achievement the organisation goals and objectives.
Scope of the study/research The scope of the study cover the flour mills industries in Nigeria with particular reference to BUA Flour mills Nigeria Limited, Kano. This company is choose to be the case study out of the flour mills companies in Nigeria. Finding obtained there from were generalized on all flour mills companies in Nigerian. This is due to the fact that they belong to the same industry having Uniform method of preparation or modes as well as being guided by the same law status.
Limitation of the study In the course of conducing this research work, making constraints were encounter which is beyond the control of the research due to their intensive nature. And gives the researcher tough time, among of which is sufficient time; inadequate time factors contributed to the smooth running of this researcher work. Also financial constraints is the key factor that contributed major by. Inadequate money given the researcher a very hard time in getting enough data.
Other activates such as lecture time assignment and what have you contribution getting enough data for this research work.
Definition of key terms Analysis:- this is the detailed study or examination of some thing in order to understand more about it.
Decision:-This is a choice or judgment that you make after thinking and talking about what is best thing to do.
Efficiency:- The quality of doing something well with no west of time or money.
Effective:- This refers to producing the result that is wanted or intended, that producing a successful result.
Management:- The act of running and controlling a business or similar organisation.
Organisation:- A group of people who from a business etc together in order to achieve a particular aim.
Planning:- his is any arrangement for closings using or achieving something in the future.
Variance:- This refers to the amount by which some thing changes or is different from something else.
Chapter two 2.0 literature review definition 2.1 variance analysis (lucey, 2006). The term variance is revelry used on its own. Usually it is qualified in some way, for example, direct material cost variance, direct labour efficiency variance and soon. The process by which the total difference between standard and actual costs is sub-divided is known as “Variance analysis” which can be defines “The evaluation of performance by means of variances, whose timely reporting should maximises the opportunity for managerial action”.

Perception of the Effectiveness of Internal Audit Function

Management is constantly striving to effectively its objectives and protect assets. Therefore, management needs to continually evaluate the activities of every department in their organisation. Internal audit (IA) has become an important and an integral function of organisations in achieving their objectives and protecting assets. Thus, a study of the role and effectiveness of internal audit function in developing countries such as Libya could enable an understanding of internal audit practice where, currently, there are no local standards on how the effectiveness of those departments can be evaluated. Libya is a developing Arab state located in north central Africa with an area of 1,759,540 square kilometres (1,092,882 square miles) and aـــ Mediterranean coastline nearly 1,800 kilometres long (1,118 square miles) from Tunisia in the west to Egypt in the east.
Limited prior research has focused on the effectiveness of internal audit (EIA). Also, previous research has failed to determine a generally agreed approach to ascertain the effectiveness of internal audit function. Employing institutional theory and Marx’s theory of the circuit of industrial capital, this study seeks to explore and interpret the opinions of the participants regarding the role and effectiveness of internal audit in Libyan public enterprises. It aims to introduce a new perspective for the evaluation of internal audit effectiveness by identifying two groups of factors that impact on audit effectiveness, that is, those related to Standards for Professional Practice of Internal Auditing (SPPIA) namely, independence, competences, scope of work and work performance and those related to organization management support namely, salaries and material and moral incentives.
The study will utilize a qualitative research paradigm to establish whether the internal audit function in Libyan public enterprises is perceived to be effective. Interviews will be used to collect data from managers of administrative affairs, financial controllers, directors of internal audit in public enterprises operating in manufacturing, banking and insurance sectors, and external auditors responsible for these enterprises.
THE RESEARCH PROBLEM AND ITS SETTING Research Setting The professional practice of IA commenced around 1941. Before the 1950s, IA focused on financial audit and was heavily involved in the review of financial statements. Since 1941 the Institute of Internal Auditors (IIA) has played an important role in developing and enhancing the professional stature of internal auditors (Yee et al. 2008). IIA (2004) defined internal auditing as:
“An independent, objective assurance and consulting activity designed to add value and improve an organization’s operations. It helps an organization accomplish its objectives by bringing a systematic, disciplined approach to evaluate and improve the effectiveness of risk management, control, and governance processes”.
According to this definition internal auditors should play a relevant role in evaluating and improving the effectiveness of risk management processes. This statement also reflects the Marxist definition of internal auditing that modern operational auditing seeks to increase the rate of return on capital, as well as value adding (Yee et al. 2008). Recently, IA has became an important part of organizational structure as a value adding service to organizations (Al-Twaijry, Brierley