Effects of budgetary control on the financial performance of milk tea shops in Cavite / by Arme Jane V. Baylet, Stephanie P. Duckworth and Willen Ann E. Perey.

Thesis (Bachelor of Science in Business Management major in Financial Management) Cavite State University.

Includes bibliographical references.

College of Economics, Management and Development Studies (CEMDS).

BAYLET, ARME JANE V., DUCKWORTH, STEPHANIE P., and PEREY, WILLEN ANN E. Effects of Budgetary Control on the Financial Performance of Milk Tea Shops in Cavite. Undergraduate Thesis. Bachelor of Science in Business Management. Cavite State University, Indang, Cavite. August 2022. Adviser: Ms. Danikka A. Cubillo.

There are thousands of new competitors entering the market which results to intense competition and more difficulty in achieving profits. One of those businesses with rising demand and increasing competition is the milk tea business. Milk tea is a popular drink that holds a large number of businesses around the Philippines. The main objective of the study is to determine if the socio-demographic profile of owners can affect the budgetary control of the milk tea shops and determine the effect of budgetary control in terms of budget planning, budget coordination, and budget control on the financial performance of milk tea shops in Cavite. The study was conducted from March to December 2021 in Cavite. Descriptive and causal or explanatory research methods were used in this study. Using an adapted questionnaire, data were collected from the 100 owners of milk tea shops from the cities and municipalities of Cavite which were chosen using the quota and purposive sampling technique. Majority of owners who manages milk tea shops in Cavite were female and single with ages 25 to 29 years old who attained a college degree, and more than half of the milk tea shops were operating for less than three (3) years. Meanwhile, the level of budgetary control practices towards budget planning, budget control, and budget coordination were all interpreted as always. The financial performance of milk tea shops in terms of return on assets, return on investment, and return on equity are all above the industry average. Lastly, using the multiple regression analysis, it was revealed that the socio- demographic profile does not affect the budgetary control practices in terms of budget planning and budget control while the socio-demographic profile in terms of gender affects the budgetary control practices in terms of budget coordination. Moreover, there is no significant effect between budgetary control and financial performance in terms of return on asset and return on equity while there is a significant effect between budgetary control in terms of budget coordination on the financial performance of milk tea shops in terms of return on investment. The study established that budget coordination has a significant effect on financial performance, and as such, it is encouraged to have free discussions between the staff and the management regarding budgeting. Additionally, to fully understand the link between budgetary control and financial performance of milk tea shops, the study recommends that comparable studies be conducted utilizing other financial ratios and indicators as well as examining additional budgetary control measures. affects the budgetary control practices in terms of budget coordination. Moreover, there is no significant effect between budgetary control and financial performance in terms of return on asset and return on equity while there is a significant effect between budgetary control in terms of budget coordination on the financial performance of milk tea shops in terms of return on investment. The study established that budget coordination has a significant effect on financial performance, as such, it is encouraged to have free discussions between the staff and the management regarding budgeting. Additionally, to fully understand the link between budgetary control and financial performance of milk tea shops, the study recommends that comparable studies be conducted utilizing other financial ratios and indicators as well as examining additional budgetary control measures.

Submitted to the University Library 11/07/2022 T-9228