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.
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