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This research work on A Comparative Study of Expenditure Controls method in Government and private Hospitals is aimed at studying and analysing the different methods of expenditure control that is being adopted by these hospitals, their practical application and their level of effectiveness. It is aimed at carrying out a comparative analysis of two hospitals. To achieve the aim of this research, secondary data through textbooks and journals were used to review some of the related literatures. Equally, questionnaires, interview and observation, which sought to find out facts needed for analysing, were used.

The questionnaires were analyzed by simple percentages while hypothesis were tested using chi-square statistics. The findings of the analysis indicate among others that the method of expenditure control used by both hospitals are not the same; The daily control method for private hospitals and the vote card method for Government Hospitals. The different methods of expenditure control used by the two hospitals are effective, but with slight loopholes associated with vote card method. I recommend among others that both hospitals should adhere strictly to authorization procedure for drug purchased and materials purchases. Both hospitals should exhibit high degree of cash management and employ competent personnel for proper and efficient expenditure control.


Approval page ii

Certification page iii

Dedication iv

Acknowledgement v

Abstract vii

Chapter One

1.0 Introduction

11.1 Background Of The Study

11.2 Statement Of the Problem

41.3 Objectives Of The Study

61.4 Research Questions

61.5 Formulation Of Hypotheses

71.6 Significance Of The Study

81.7 Scope Of The Study

91.8 Limitations Of The Study

91.9 Definitions Of Terms 10

Chapter Two

2.0 Review Of Related Literature

122.1 Introduction

122.2 Overview Of Expenditure Control

122.3 The Expenditure Control Methods

142.4 Internal Auditing Overview

192.5 Management Audit

252.6 Cost Benefit Analysis

272.7 Quantitative Models For Expenditure Control

282.8 Items Related To the Income Generated In A Hospital

322.9 Items Related To The Expenditure Of A Hospital

362.10 The Expenditure Control Method That Are In Application

372.11 Vote Card Method of Expenditure Control 42

Chapter Three

Research design and Methodology

3.0 Introduction

453.1 Sources of Data

463.2 Research Instrument

473.3 Reliability and Validity of Research Instrument.

483.4 Population

493.5 Sample Size/Technique

503.6 Administration Of Research Instrument

523.7 Method Of Data Analysis

523.8 Decision Criterion For Validation Of Hypotheses 53

Chapter Four

4.0 Data Presentation and Analysis

544.1 Data Analysis/Presentation

544.2 Testing Of Hypotheses

674.3 Discussion of Findings 75

Chapter Five

5.0 Summary of findings, Conclusion and Recommendations 785.1 Summary of findings 785.2 Conclusion 795.3 Recommendation s 79Bibliography 82Appendix 1 85Appendix 2 86




Expenditure control or cost control is part of management control process, in every organisation.This process is very important to any organisation be it profit making organisation or non-profit making organisation. Thus, lack of this practice in any organisation will cause misapplication of cash in cash disbursement process and this will create a very big problem leading the organisation into deficit and at an extreme case, the organisation might wind up. Many researches have been conducted in the reason for winding up of companies and organisation in which lack of expenditure control process had found responsible.Expenditure control has been defined as the process by which managers utilize effectively and efficiently, the scarce,
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