'Beyond' Budgeting -- Call it Whatever, It's Necessary

'Beyond' Budgeting -- Call it Whatever, It's Necessary

Budgeting, in whatever form at whatever level is a critical process for management to exercise. When properly performed, it is the key cost and operational analysis duty.
True, some companies ignore it (supposedly), but I'd suggest they either call the tasks something else or are very poorly run organizations. They will certainly have very poor cost control processes, and little understanding across management levels of how and why their operations and costs are derived.
My experience, 30+ years, as both an employee and consultant to companies has taught me that much of management has little understanding of cost analysis or cost accounting. This is become the situation more and more as we become a 'service' economy(s).
Cost analysis is much more difficult when the products are a services because typically the product mix is very fluid. Too much math for most accountants.
But a well-defined, well-developed VARIABLE budget is critical.

		Comments Sort by date Sort by rating Rating
		2 Masilo Manager, South Africa
	Budgeting Still at the Core of Planning I think the value of budgets is immense hence companies still do budgeting as it is the core of plan... Sign up

		1 Gerhard Tiroch, Austria
	Objectives are Essential and Necessary It's necessary to have financial and non-financial objectives. Non-financial objectives are the gro... Sign up