The Use of Budgets in Forecasting the Activity of the Firm (original) (raw)

Budget and bugetary process in romania

The unitary system of budgets was an important moment in the evolution of public finances, creating the framework for more effective management and control over allocated funds, public finances becoming those interactive tools used to match the requirements of economic and social environment, also being a catalyst for development. Romanian economy hasn't matured yet, we are to achieve satisfactory participation in Gross Domestic Product (GDP) which, concerning the budget, should be translated into a higher need for contribution, or should be seen, as well, as a factor of progress and a step towards European integration. We appreciate the important role of the International Monetary Fund (IMF) Agreement that requires specific behavior in implementing the budget and monitoring the Executive to fulfill the commitments. Also, the EU proposal to consider the national budgets of the governments of other countries in order to monitor the budget deficits would be for this stage also necessary and beneficial .We are now experiencing the reconsidering of the budget process and budget system at European level with the required EU enlargement, which aims to rethinking the perception role that public finances must play inside contemporary society.

The Budgetary Implementation on Main Components of Romania's General Consolidated State Budget

EuroEconomica, 2017

This paper takes as its starting point an overview of Romania's budget system structure, followed by a number of basic elements regarding the revenues that can be mobilized to these budgets and, implicit, types of expenses that can be financed from the budget funds. Given the significant number of components of the budgetary system, it was followed the budgetary implementation on main components of Romania's general consolidated budget, with direct reference to the state budget, local budgets, state-run social security budget, national fund for health insurance budget and the unemployment insurance budget. The period on which we examined the budgetary implementation, on the structures mentioned above, is the 2004-2015 period of time and, reported to these budgetary exercises we considered, under progressive aspect, the dimension of the collected budgetary revenues, of the financed expenses (as final destination of certain of these revenues) and, also, the result of the budge...

Capital budgeting: the Romanian university professors' points of view

2010

This study aims at validating the points of view of the Romanian finance university professors regarding capital budgeting. The study is original and important in the same time, taking into consideration that their opinions, due to their vocation of educators, may represent the starting point for debates on the most suitable methods and techniques used in the practice of this field. It can be noticed that the dominant points of view converge to the recommendations of the main reference works in the domain of corporate finance. Hence, indicators like net present value, internal rate of return or profitability index are the most preferred. Among the techniques of risk quantification, the sensitivity analysis is considered as the most suitable, followed by the Monte Carlo method and the scenarios technique. As for the discount rate used for the investment projects analysis, the most numerous respondents recommend the weighted average cost of capital.

The Management of Process of the Budget Area: Universidad Técnica de Manabí

2018

The budget area, of the Technical University of Manabí, has an organizational structure that is not coupled with the planning, because it has an organizational complexity according to its technical-administrative dimension, although it complies with all the organizational processes that involve the execution of the institutional budget taking into account the importance of human, material and technological resources, there are links in the budget execution program that are still weak. The research deals with the need to manage the budgetary processes, according to the activities that are planned within the Budget Area, with the objective of fulfilling the institution's priorities and strategies through the amounts assigned to its income and expenses, knowing that the budget planning and execution process is a fundamental tool to fulfill the mission and vision of Higher Education Institutions. The objective of the research is to look for alternatives that allow to solve the insuf...

EMPIRICAL STUDY OF THE IMPLEMENTATION OF CERTAIN BUDGETING CONCEPTS IN MANUFACTURING COMPANIES IN SERBIA

економске-теме.срб./59/број/1 , 2021

The basic indicators of manufacturing industry's level of development are still at an unenviable level, although it provides the majority of tradable goods of Serbian economy and has the most significant share in gross domestic product. This state of the manufacturing industry in Serbia is the result of an unstable macroeconomic environment and institutional insecurity, as well as an inadequate management approach in companies of this sector. Taking into account the situation, there is an obvious need to change management approach in these companies, which includes improving their budgeting processes and systems. Budgeting, as a management instrument, has become important in companies in Serbia only in the last decades, that is, after the change of the economic system. The results of the conducted empirical study, aiming to perceive the current state and relevant management attitudes regarding the implementation of certain budgeting concepts in manufacturing companies in Serbia, are presented in this paper. The study aims to determine the current presence of certain budgeting concepts, as well as which concepts the management of the sample companies intends to implement in the future, since it considers them an appropriate and a good solution for its company, taking into account the specifics of its environment and business. The presented results will show whether manufacturing companies in Serbia follow global trends in budgeting practices that relate to the implementation of modern budgeting concepts with flexibility, customer focus and performance based as their key features.

Management through budget in the context of U.E. integration and economic change

In the context of E.U. integration and economic change emerges a new organization (the firm) based on knowledge, which uses as managerial method, a method of financial management-the management through budget. Having in view a profitable activity, this method assumes solving three interdependent problems: financing (attraction and using of the capital), risk (removal of the bankruptcy risk) and performance (obtaining the performance-rationality and maxim efficiency of the activity). These fundamental problems were at all times, but their importance magnified now, at the beginning of the 21 st century. By solving these problems and taking into account the implications of change on the organizations, we can adapt to the European requirements and we can raise competitiveness on the E.U. market.