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With the assumption that budgeting application has significance in Liliw, Laguna’s
footwear industry, a diagram below has been developed to further elaborate the operational
framework of the study. This framework merges the a) Independent variable which is budgeting
1. ROLE OF BUDGETING
Improved Communication
Accountability
Effectiveness in Growth
implementation Control
Commitment
Business Control
inputs)
In the conceptual framework approach, which has its key issues as the historical and
institutional basis of the functioning of budgeting and the institutional characteristics that arise in
analytical framework prepared was used to study situations that reflect precisely the salient
relationship of the variables within which, operated during the study. The variables are defined
between budgeting and financial performance. The type of relationship they generate play a
The main strength of the conceptual framework is that it strives to capture the specificity
about the realities of the role of budgeting where it looks at the management of ongoing activities
after budgeting, the efficiency measures and effectiveness in implementation. This means that
budgeting has a relationship with financial performance. The conceptual framework shows that,
the variables had a significant impact on the budget usage, characteristics and financial
performance. Budgeting as seen in the figure above is assumed to influence on the financial
performance