THE FLEXIBLE BUDGET– BASIC TOOL OF THE MANAGEMENT CONTROL IN THE ECONOMIC ENTITIES
In the content of this article we emphasize the importance of flexible budgeting of expenses for an economic entity. We focused on indirect costs of production, since they include both variable costs and fixed costs, and the way of their budgeting is different. In the first part of the paper we illu...
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| Format: | Article |
| Language: | English |
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University of Pitesti
2015-06-01
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| Series: | Buletin ştiinţific: Universitatea din Piteşti. Seria Ştiinţe Economice |
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| Online Access: | http://economic.upit.ro/repec/pdf/2015_1_1.pdf |
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| author | Mariana RADU George Ciprian GIJU |
| author_facet | Mariana RADU George Ciprian GIJU |
| author_sort | Mariana RADU |
| collection | DOAJ |
| description | In the content of this article we emphasize the importance of flexible budgeting of expenses for an economic entity. We focused on indirect costs of production, since they include both variable costs and fixed costs, and the way of their budgeting is different. In the first part of the paper we illustrate how to prepare a flexible budget for more predictable levels of activity, and in the second part, we show how to recalculate budgeted expenses for the actual volume of activity. The budget recalculated for the actual volume of activity allows the comparison, in the correct way, of expenditure forecast to those actually incurred, expenses that relate to the same volume of activity. |
| format | Article |
| id | doaj-art-0a3bb4f06c8843049420f88d8f376a35 |
| institution | DOAJ |
| issn | 1583-1809 2344-4908 |
| language | English |
| publishDate | 2015-06-01 |
| publisher | University of Pitesti |
| record_format | Article |
| series | Buletin ştiinţific: Universitatea din Piteşti. Seria Ştiinţe Economice |
| spelling | doaj-art-0a3bb4f06c8843049420f88d8f376a352025-08-20T02:41:46ZengUniversity of PitestiBuletin ştiinţific: Universitatea din Piteşti. Seria Ştiinţe Economice1583-18092344-49082015-06-01141310THE FLEXIBLE BUDGET– BASIC TOOL OF THE MANAGEMENT CONTROL IN THE ECONOMIC ENTITIESMariana RADU0George Ciprian GIJU1Faculty of Economic Sciences, Valahia University of Târgovişte, RomaniaFaculty of Economic Sciences, Valahia University of Târgovişte, RomaniaIn the content of this article we emphasize the importance of flexible budgeting of expenses for an economic entity. We focused on indirect costs of production, since they include both variable costs and fixed costs, and the way of their budgeting is different. In the first part of the paper we illustrate how to prepare a flexible budget for more predictable levels of activity, and in the second part, we show how to recalculate budgeted expenses for the actual volume of activity. The budget recalculated for the actual volume of activity allows the comparison, in the correct way, of expenditure forecast to those actually incurred, expenses that relate to the same volume of activity.http://economic.upit.ro/repec/pdf/2015_1_1.pdfbudgetdeviationscostscontrollevels of activity |
| spellingShingle | Mariana RADU George Ciprian GIJU THE FLEXIBLE BUDGET– BASIC TOOL OF THE MANAGEMENT CONTROL IN THE ECONOMIC ENTITIES Buletin ştiinţific: Universitatea din Piteşti. Seria Ştiinţe Economice budget deviations costs control levels of activity |
| title | THE FLEXIBLE BUDGET– BASIC TOOL OF THE MANAGEMENT CONTROL IN THE ECONOMIC ENTITIES |
| title_full | THE FLEXIBLE BUDGET– BASIC TOOL OF THE MANAGEMENT CONTROL IN THE ECONOMIC ENTITIES |
| title_fullStr | THE FLEXIBLE BUDGET– BASIC TOOL OF THE MANAGEMENT CONTROL IN THE ECONOMIC ENTITIES |
| title_full_unstemmed | THE FLEXIBLE BUDGET– BASIC TOOL OF THE MANAGEMENT CONTROL IN THE ECONOMIC ENTITIES |
| title_short | THE FLEXIBLE BUDGET– BASIC TOOL OF THE MANAGEMENT CONTROL IN THE ECONOMIC ENTITIES |
| title_sort | flexible budget basic tool of the management control in the economic entities |
| topic | budget deviations costs control levels of activity |
| url | http://economic.upit.ro/repec/pdf/2015_1_1.pdf |
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