The Use Of Budgets In Forecasting The Activity Of The Firm
The firm’s activity is recommended to develop in a permanent equilibrium between incomes and expenses. In the actual stage of transition of Romanian economy, the firms can not maintain this equilibrium because the expenses determined by the achievement of production overtake the level of the incomes obtained from the selling of production even when certain branches of activity are subsidized from the public budget. In these conditions, finding the methods that allow the sizing and control of the equilibrium relation between expenses and incomes represents a problem with which the firm’s management confronts. From this point of view the budget can become an instrument of correlation and especially of turning to good account the relation between incomes and expenses. Budgeting becomes a systematic economic practice that assumes the development of a process of formal assignment of financial resources that aim at the achievement of some established objectives for the future periods.
Volume (Year): 1 (2010)
Issue (Month): 17 (March)
Pages: 25 - 38
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