Flexible Budgeting as Instrument of Management Industrial Enterprise

Larionova, I. A.; Газиева, Л. Р.; Пыркова, А. О.

doi:10.17073/2072-1633-2014-1-65-68

Cited by 1 publication

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“…Therefore, there is a need to improve the existing budgeting method by closely linking the development of the budget with the production activities of the industrial enterprises and the changes in the industrial environment. That aligns with the findings of the previous studies [21][22][23][24], emphasizing that for efficient budgeting modeling, it is imperative to incorporate a more flexible approach that considers the rapidly changing industrial environment and the changes in the production activity level. For instance, an industrial enterprise must keep track of the production volume that can vary each year.…”

Section: Information and Analytical Supportsupporting

confidence: 86%

Improving the Efficiency of Budgeting in Industrial Enterprise: The case of Russia, Italy, and the Middle East

Majeed¹,

Косов

Fiume

et al. 2022

Emerg Sci J

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The study improved budgeting efficiency at industrial enterprises with evidence from Russia, Italy, and the Middle East. In the era of contemporary globalization and technological advancement, a budgeting system holds paramount significance in the effective management of the financial operations and activities, enhancing the overall efficiency of the firm's cash management, mitigating the risk of finance misallocation, and improving the overall financial performance of the enterprise. However, despite its effectiveness, there is a lack of evidence supporting budgeting automation and its efficiency in managing industrial enterprises. More so, limited theoretical and practical relevance is found in the context of Russia, Italy, and the Middle East. This research intended to fill the existing research gap where a qualitative research design was opted. Primary data were collected from the budgeting heads of 3 pharmaceutical firms, each located in Russia, Italy, and Iran. In-depth interviews with 3 budgeting heads identified that the conventional incremental budgeting system needed amendment and replacement with a consolidated and contemporary yet flexible approach to bring radical improvements at the macro-environment level within the industrial enterprise. The key findings led to the development of a model to improve budgeting efficiency, comprising three components: information and analytical/accounting support for budgeting, production accounting information, and a combination of the regulated operation prices. The consolidation of these three components can yield budgeting efficiency. Doi: 10.28991/ESJ-2023-07-01-013 Full Text: PDF

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Section: Information and Analytical Supportsupporting

confidence: 86%