AN EXPLORATORY STUDY REGARDING THE RELEVANCE OF BUDGETS AMONG ROMANIAN COMPANIES

Ionela Ursu
Additional contact information
Ionela Ursu: Alexandru Ioan Cuza University of Iasi

Revista Economica, 2024, vol. 76, issue 4, 148-177

Abstract: Budgets always played an important role in the business companies over the years. Budgeting is used for many purposes: planning, performance appraisal, employee motivation, allocation of the company resources, control. In the current literature studies, there is a debate if the budgets are still relevant or not for companies, some authors lean towards a management without budgets and others are proposing that budgets should be improved and used together with other controlling instruments. The purpose of this paper is to examine the current trends regarding the budgeting practice among the Romanian companies. Is the traditional budgeting approach predominantly used by the firms? Is there a tendency to abandon this tool? Is budgeting still adding any value to the companies? Are companies taking into account a management without budgets? To answer to all of these questions a survey was used as research method. Results show that Romanian companies are still using budgets, for planning aspects, control (means performance evaluation) and resource allocation. Fixed budgeting model is still used by most of the companies, followed by rolling budget and incremental budgeting. The budgeting process is still adding value in reaching the company goals. Budgets are still important for management during the decision making process especially for costs purposes, invests and strategic aspects. Companies do not want to abandon budgets as a tool but are also open to make some improvements to the classical approach.

Keywords: budgets; budgeting models; survey (search for similar items in EconPapers)
JEL-codes: M41 (search for similar items in EconPapers)
Date: 2024
References: View complete reference list from CitEc
Citations:

Downloads: (external link)
http://economice.ulbsibiu.ro/revista.economica/archive/76410ursu.pdf (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:blg:reveco:v:76:y:2024:i:4:p:148-177

DOI: 10.56043/reveco-2024-0040

Access Statistics for this article

More articles in Revista Economica from Lucian Blaga University of Sibiu, Faculty of Economic Sciences Lucian Blaga University of Sibiu, Faculty of Economic Sciences Dumbravii Avenue, No.17, postal code 550324, Sibiu, Romania. Contact information at EDIRC.
Bibliographic data for series maintained by Eduard Alexandru Stoica ().