Impact of Budgetary Systems on Petroleum Refining Cost Control

Abstract

This research studies the Impacts of Budgetary Systems on Petroleum Refining Cost Control. The study problem is the ignorance of the role of well preparing to the budgets in optimizing the cost of refining petroleum in addition to what extent budgetary software can be helpful in petroleum refining cost control besides the role of the users in budgeting controlling. The objectives of the study are to give Khartoum refinery easy and traced steps for budget preparation. To maximize the role of modern software in Khartoum Refinery in order to control the refining cost. To emphasize the big role of the users in Khartoum Refinery towards cost control. The study includes three hypotheses specified as follows:

1- Well preparing for the budget effects on the variances. 2- Stricted software effects on the production cost. 3- Users (employees) are considered as one of the important effective factors in budget exceeding.

The researcher followed in this study the methodology of historical approach in ordering the periods of the previous studies, deductive approach for picking the facts and descriptive approach for the analyzed data by statistical package for social sciences (SPSS).

The study results are: 1- The great role of budget preparation in Khartoum Refinery helping in controlling the refining cost. 2- The updated restricted software in Khartoum refinery contributes in cost control in each production stages even in management and financial transactions. 3- Contributions of the staff in budget preparation and implementation made them very careful in processing their jobs and controlling their budgets spontaneously.

Finally the study recommended that: 1- Providing training courses for the budget users both staff and managers to enlighten them by the important role of budgeting process. 2. Khartoum refinery should have well knowledge committee for choosing the new software and even when updating the old ones to justify the installation and licenses cost in order to compare it with the yields and the benefits of using this software.