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Benefits of a a budget system. Traditional budgetary Systems versus Rolling budgets, zero-based budgets and activity-based budgets

Silvia Stamenova

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Sozialwissenschaften, Recht, Wirtschaft / Betriebswirtschaft

Beschreibung

Academic Paper from the year 2017 in the subject Business economics - General, grade: 5.50, Anglia Ruskin University, language: English, abstract: Budgeting is one of the most important areas of company’s activity, being highly susceptible to challenges in the business medium. Thus, this report outlines the benefits from having a budget system, as well as the positives of the budget process to the development of the company. However, even traditional budgeting system has its negatives for the company; it does not inspire change, the method does not offer incentives, inspires expenses at any price, without the absolute necessity of performing them. Importantly, an analysis of the suitability of the incremental budgeting system within the context of the industry UniDate operates into has been made.

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budgeting, traditional budgetary system, zero-based budgeting, rolling budgets