Tag Archives: Budgeting

Recession and Covid-19 Impact on Cost Management; Wizz-Air Company, case study (Published)

Citation: Ejona Duçi, Rovena Troplini   and  Xhenisa Myshketa  (2022) Recession and Covid-19 Impact on Cost Management; Wizz-Air Company, case study, European Journal of Accounting, Auditing and Finance Research, Vol.10, No. 3, pp.1-17

Abstract: Recession, an inevitable economic phenomenon that is difficult to be predicted by the scientists of the time, a pandemic which hits the economic-financial sphere of a certain region or in global form, but as this phenomenon spreads, what are its consequences? What is the right and most effective way today for an entity to successfully meet this challenge? One of the most appropriate forms is the role that cost and management accounting management has in the entity performance, as well as the decisions taken by their managers, as it is the latter who manage to “predict” the consequences of this economic downturn and enable its survival.The purpose of the paper is to study the role of cost and management accounting in a recession situation, specifically the economic downturn caused by the Covid-19 pandemic. This is done by analysing how managers managed to cope with such situations and what decisions they have taken. Other important elements which have been studied are variable and fixed cost during recession. The methodology of the study is descriptive, comparative and analytical based on the secondary data obtained from statistical institutions in Albania and especially the focus is on the airline company, “Wizz Air”, which is part of the transport sector. This sector, being related to travelling, is among the most affected by the pandemic situation, because of travel restrictions applied in recent years. A regression analysis is used to see the relation between costs and between employees number and employee cost and how Wizz Air company has reduced some possible costs. According to this analysis appropriate conclusions have been shown.

Keywords: Budgeting, COVID-19 pandemic, Management, Management Accounting, Recession, cost accounting

Budgeting and Sustainable Performance in Nigeria Quoted Food and Beverages Companies (Published)

Budgeting entails a distinct pattern of financial decisions in profit oriented organizations. The uncertainties and volatility prevailing in Nigeria business environment leading to stock out, deflection of customers, insolvency and financial distress, effectual liquidation of companies and in the alternative relocation of businesses out of Nigeria have given rise to the challenge of budgeting and budgetary control in Nigeria quoted  food and beverages companies. This studt evaluated the effect of budgeting on sustainable performance of Nigeria quoted food and beverages companies. Survey research design was adopted.  The population for the survey comprised all the eighteen (18) quoted food and beverages quoted companies in Nigeria stock Exchange as at 31 December 2017, out of which five (5) respondents with experience in accounting and finance were selected in each organization using purposive and judgmental sampling techniques.  Sixty (60) copies of the questionnaire were administered with retrieval rate of 92% .The findings showed that budgeting has significant  positive effect on production quantity with R2 0.448,F-statistics 9.938,p-value 0.000.Budgeting has significant positive  effect on turnover with R,20.409,F-statistics 8.488,p-value 0.000.Budgeting has significant positive effect on profit after tax with R2 0.255,F-statistics 4.188 and p-value 0.005.Budgeting has significant  weak but positive effect on dividend paid with R2 0182,F-stattistics of 2.733 and p-value of 0039.The result of the combined effect showed that budgeting has  positive and significant effect on sustainable performance of Nigeria quoted food and beverages companies in Nigeria with R2 0.511,F-statistics of 12.778 and p-value of 0.000.The study concluded that budgeting has positive effect on sustainable performance of Nigeria quoted food and beverages companies in Nigeria.

Budgeting entails a distinct pattern of financial decisions in profit oriented organizations. The uncertainties and volatility prevailing in Nigeria business environment leading to stock out, deflection of customers, insolvency and financial distress, effectual liquidation of companies and in the alternative relocation of businesses out of Nigeria have given rise to the challenge of budgeting and budgetary control in Nigeria quoted  food and beverages companies. This studt evaluated the effect of budgeting on sustainable performance of Nigeria quoted food and beverages companies. Survey research design was adopted.  The population for the survey comprised all the eighteen (18) quoted food and beverages quoted companies in Nigeria stock Exchange as at 31 December 2017, out of which five (5) respondents with experience in accounting and finance were selected in each organization using purposive and judgmental sampling techniques.  Sixty (60) copies of the questionnaire were administered with retrieval rate of 92% .The findings showed that budgeting has significant  positive effect on production quantity with R2 0.448,F-statistics 9.938,p-value 0.000.Budgeting has significant positive  effect on turnover with R,20.409,F-statistics 8.488,p-value 0.000.Budgeting has significant positive effect on profit after tax with R2 0.255,F-statistics 4.188 and p-value 0.005.Budgeting has significant  weak but positive effect on dividend paid with R2 0182,F-stattistics of 2.733 and p-value of 0039.The result of the combined effect showed that budgeting has  positive and significant effect on sustainable performance of Nigeria quoted food and beverages companies in Nigeria with R2 0.511,F-statistics of 12.778 and p-value of 0.000.The study concluded that budgeting has positive effect on sustainable performance of Nigeria quoted food and beverages companies in Nigeria.

Keywords: Budgeting, Control, Coordination, Evaluation, Planning, and sustainable performance.

Overview of Management Accounting Techniques (Published)

In every organization, management must plan, organize, guide, motivate, evaluate and control. The main role of management accounting is to support managers inside the organization in forecasting as well as monitoring the present and past performance, measures and reports financial and non-financial information as well as other types of information on the monthly basis or more frequent depending on organization in the relevance for specific management decisions and control system, that are intended primarily to assist managers in fulfilling the goals of the organization. In this paper, the researcher aims to review some of the modern management accounting techniques, their definitions, process, advantages, and benefits.   

 

Keywords: Accounting, Activity Based Costing, Balanced Scorecard., Budgeting, Just-in-time