Practice Developments in Budgeting: An Overview and Research Perspective

Abstract

Practitioners in Europe and the U.S. recently have proposed two distinct approaches to address what they believe are shortcomings of traditional budgeting practices. One approach advocates improving the budgeting process and primarily focuses on the planning problems with budgeting. The other advocates abandoning the budget and primarily focuses on the performance evaluation problems with budgeting. This paper provides an overview and research perspective on these two recent developments. We discuss why practitioners have become dissatisfied with budgets, describe the two distinct approaches, place them in a research context, suggest insights that may aid the practitioners, and use the practitioner perspectives to identify fruitful areas for research.

As Múltiplas Funções do Orçamento Empresarial

“…Essas críticas, além de contestarem o papel e o potencial do artefato, consistem em adequar o orçamento ao novo ambiente de negócios com alta incerteza, mudanças tecnológicas mais frequentes e uma maior competição. Nesse contexto, têm sido propostos certos artefatos derivados do orçamento como o rolling forecast, o orçamento flexível (Ekholm & Wallin, 2011), o orçamento baseado em atividades (Hansen et al, 2003;Schmidt, 1992;Vanzella & Lunkes, 2009), e também outras filosofias de gestão, como o beyond budgeting (Frezatti, 2005;Hope & Fraser, 2003).…”

A Ten-Step Model for Solving Ethical Dilemmas

“…As an output of a business process, firms' goods and services with a clear effect on ethical values could include life-saving drugs, the care of poor children (a biological value), a product that makes a contribution to scientific progress (a knowledge value) or the beauty of a dress or of a building (an aesthetic value). We used Activity-Based Budgeting (Hansen, Otley, & Van der Stede, 2003;Brimson & Antos, 1999;Bunce, Fraser, & Woodcock, 1995;Hansen, 2011) as a tool for an initial analysis of the issue. Aware that other attempts to integrate ethical values into business processes have been made in some research concerning ethical culture (Ferrell, Fraederic, & Ferrell, 2011;Waters & Bird, 1987;Grojean et al, 2004;Adam & Rachman-Moore, 2004;Valentine & Barnett, 2003) and strategic planning (Robin & Reindenbach, 1987;Guerrette, 1988;Hosmer, 1994;Rampersad, 2003;Bonn & Fisher, 2005;Ferrell, Fraedich, & Ferrell, 2011), Activity-Based Budgeting allows managers to have a detailed plan of business processes, highlighting their single components that encompass several aspects of actions for a certain period of time (e.g.…”

The Advantages of Budgets: A Survey of Macedonian Legal Entities

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