1.2 REVIEW OF LITERATURE:An Examination of the Effects of Budgetary Control on PerformanceNovember, 2007 Carolyn M. Callahan,Doris M. Cook Professor,Tammy R.

Way mire,University of ArkansasFayetteville.T h i s s t u d y r e p r e s e n t s t h e f i r s t w h i c h s u g g e s t s t h a t t i g h t budgetary control may not be aseffective in improving performance as a s s u m e d b o t h i n p u b l i c s e c t o r a n d p r i v a t e s e c t o r entities. While it would be premature to conclude that tight budgetary control is not related toPerformance, it can be concluded that the effective level of budgetary control will vary basedon contextual factors. In this study, it appears that the effective level of budgetary control is at the net level for the funds within governmental entities. Budget and Budgetary Control for Improved Performance: A Consid e r a t i o n f o r Selected Food and Beverages Companies in Nigeria Ishola Rufus AkintoyeDepartment of Economics, Faculty of the Social Sciences,University of Ibadan, Oyo State, Nigeria, West Africa.This study examines how budget and budgetary control can impact on the performance of theselected food and beverages companies in Nigeria, as considered in this study, being a sampleof the entire population of the firms in the Nigerian Manufacturing Industry. We reviewed the performance of the Nigeria manufacturing industry in previous and recent times. We found o u t t h a t t h e p e r f o r m a n c e o f this industry leaves much to be desired due to factors such asn e g l e c t o f t h e i n d u s t r y d u e t o o v e r d e p e n d e n c e o n c r u d e o i l , e p i l e p t i c p o w e r s u p p l y , collapsing infrastructures, unfavorable sectoral reforming among others and have resulted inl o w c a p a c i t y u t i l i z a t i o n o f t h e m a n u f a c t u r i n g i n d u s t r y . A n e m p i r i c a l i n v e s t i g a t i o n w a s undertaken, using the simple correlation analytics technique specifically the Pearson productmovement correlation coefficient. In most of cases considered, established the presence of strong relationship between turnover as a variable of budget and perform ance indicators EPS, DPS and NAS, of the selected food and beverages companies. Following our findings,we advise managers and business operators to pay more attention to their budgetary control

9systems, for those without an existing budgetary control system, they should put one in place,and those with a dummy or passive budgetary control system, it is time they re-established ar e s u l t oriented budgetary control system as it goes a long way in repo s i t i o n i n g t h e manufacturing industry from its creeping p erformance level to an improved high capacityutilization poin