In this article authors consider process of budgeting in relation to formation of the reporting of the organization in the IFRS format. Th e purpose, functions and main areas of budgeting and types of budgets, as well as the content of the Regulation on budgeting are disclosed.

Th is paper considers the ways and methods of planning based on variable and fi xed costs, along with the need of linear approximation of expenses as the basis of planning company’s activity.

Th e paper considers the method of direct-costing, which is used to solve many problems of business, for planning and controlling the results of operations. Th e sense and necessity of formation of the cost price on direct expenses is considered.