Abstract:
The budgetary process has been a part of management control system of the organization. This process
encourages managers to plan, consider the stakeholders involved, provides information for improved decision
making, increases and enhances communication and coordination among departments, and for evaluation. This
paper seeks to evaluate budgetary process of apparel industry in Sri Lanka (BPA) and see whether budgetary
process has significant impact on performance of such industry. The budgetary process of apparel industry was
assessed by using variables such as planning, coordination, control, communication and evaluation. The
performance of apparel industry in Sri Lanka was examined by using Return on Assets. Based on the data
extracted from apparel industry’s financial statements, correlation coefficients and regression analysis showed
that budgetary process have significant associations with the organizational performance of apparel industry in
Sri Lanka. This confirms that efficient apparel companies maintain sound budgetary process which contributes
to higher levels of organizational performance.
