Avoid Throwing the Baby Out with the Bath Water
Benhoumeur, Teacher, Algeria
First of all, regular budgeting is not to be confused with capital budgeting
Also we should differentiate budgeting as a tool for control and budgeting as a tool for planning.
In the latter role, budgeting is still a meaningful approach in dynamic environments.
Flexible and continuous budgeting, if properly applied, can handle the variations in the dynamic environment efficiently, and it may be used as a learning tool, too.
Static budgeting is associated with a predicatable, visible, stable environment, and it should not to be used in a changing environment.