Theses and Dissertations (Accountancy)

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Browsing Theses and Dissertations (Accountancy) by Subject "Budget in business."

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    The application of management accounting principles in the Emfuleni local municipality minibus taxi industry
    (Vaal University of Technology, 2022-09) Mukhodeni, Mbobo Muthige; Robbetze, N.; Beneke, J. D., Dr.
    The minibus taxi industry in South Africa is one of the biggest, fastest growing, and riskiest industries in the world. The minibus taxi industry contributes to the economy by creating over 600,000 jobs, providing fast and cheap transport and fighting poverty and unemployment. However, the recent COVID 19 pandemia restrictions has caused a sudden and movement of economic growth and competition has forced the minibus taxi industry to be competitive in all aspects. This has resulted in intense competition for minibus taxi owners. Minibus taxi owners are constantly in rivalry amongst themselves and with other public road transport providers. In early 1988, the minibus taxi industry started seeing an influx in the number of new minibus taxis and minibus owners. This influx created problems of competition within the industry and among minibus taxi owners. Due to the importance of this industry, this research study investigated whether minibus taxi owners in the Emfuleni Local Municipality apply selected management accounting principles in the management of their minibus taxi businesses. Selected management accounting principles in this study refers to cost volume profit analysis, cost structure, and budgeting. This research study followed a quantitative research design and a questionnaire was used to collect primary data from a census of 500 minibus taxi owners from the following five associations: Get Ahead Taxi Association (GATA), Vaal National Taxi Association (VNTA), Vanderbijlpark Taxi Association (VTA), Sharpeville to Vereeniging and Vanderbijlpark Taxi Association (SVVTA) and Civic Centre Taxi Association (CCTA) operating in the Emfuleni Local Municipality. Using descriptive statistical analysis to present the findings, the study used Statistical Package for Social Sciences Version 27. Findings obtained using an online questionnaire and printed questionnaire distributed revealed a lack of management accounting principles application among these minibus taxi owners. Furthermore, the minibus taxi owners do not apply cost volume profit analysis and most do not use budgets. However, it was found that some minibus taxi owners apply very basic cash budgeting through a pen-on-paper approach. It was also found that minibus taxi owners understand the application of cost structures. This research study recommends that minibus taxi owners should be offered training by skills sectors to apply the selected management accounting principles. The limitations of this research study included that the census was geogracial restrictions, level of education, and corona virus restrictions. Despite these limitations, the research study was able to fulfil its main objective by determining that majority of minibus taxi owners do not apply the selected management accounting principles.
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    Exploring the use of budgets by small businesses in the township of Sharpeville
    (Vaal University of Technology, 2021) Thithi, Mpho Jeannette; Robbetze, N.; Beneke, J., Dr.
    The South African government recognises the small, micro and medium enterprises (SMMEs) for their potential to reduce unemployment and poverty by creating job opportunities, enhancing skills, contributing to the country’s gross domestic product (GDP) and, ultimately, improving the standard of living. The SMMEs in South Africa have high failure rates despite the government’s efforts to develop the SMME sector. The inability to budget, among other factors, is identified as one of the factors that contribute to the failure rate. The main aim of this research study was to establish whether small business owners (formal and informal) in the retail and service sectors in Sharpeville make use of budgets as part of their business practice. To fulfil the primary aim, the study set out secondary objectives to establish whether small businesses (formal and informal) in the retail and service sectors used budgets and determine the types of budgets used, the purpose for which budgets are used, the perception on the use of budgets and the reasons for non-use of budgets. Data were collected by means of a self-administered questionnaire with closed-ended questions from 100 respondents. The application of descriptive statistics was conducted through IBM SPSS version 27 to analyse data collected. The results of this study revealed that small business owners (formal and informal) in the retail and service sectors in Sharpeville do not make use of budgets as part of their business practice. The main reason for small business owners to not make use of budgets was because the small business owners lack proper knowledge on how to prepare budgets. The findings in this study fill the knowledge gap with regards to the use of budgets by small businesses in the retail and service sectors operating the township of Sharpeville. The findings will make the small business owners aware that budgets are important accounting tools for business and that all business types, including small businesses, can implement budgets as part of their business practice.