IDEAS home Printed from
   My bibliography  Save this article

The Flexible Budget– Basic Tool Of The Management Control In The Economic Entities


  • Mariana RADU

    () (Faculty of Economic Sciences, Valahia University of Târgoviºte, Romania)

  • George Ciprian GIJU

    () (Faculty of Economic Sciences, Valahia University of Târgoviºte, Romania)


In the content of this article we emphasize the importance of flexible budgeting of expenses for an economic entity. We focused on indirect costs of production, since they include both variable costs and fixed costs, and the way of their budgeting is different. In the first part of the paper we illustrate how to prepare a flexible budget for more predictable levels of activity, and in the second part, we show how to recalculate budgeted expenses for the actual volume of activity. The budget recalculated for the actual volume of activity allows the comparison, in the correct way, of expenditure forecast to those actually incurred, expenses that relate to the same volume of activity.

Suggested Citation

  • Mariana RADU & George Ciprian GIJU, 2015. "The Flexible Budget– Basic Tool Of The Management Control In The Economic Entities," Scientific Bulletin - Economic Sciences, University of Pitesti, vol. 14(1), pages 3-10.
  • Handle: RePEc:pts:journl:y:2015:i:1:p:3-10

    Download full text from publisher

    File URL:
    Download Restriction: no

    References listed on IDEAS

    1. Aurelia GRIGORE & Mariana RADU, 2011. "Towards An Operational And Foreseeable Administration Accounting," Internal Auditing and Risk Management, Athenaeum University of Bucharest, vol. 30(2(22)), pages 73-80, June.
    Full references (including those not matched with items on IDEAS)

    More about this item


    budget; deviations; costs; control; levels of activity.;

    JEL classification:

    • M41 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Accounting - - - Accounting
    • L21 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Business Objectives of the Firm


    Access and download statistics


    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:pts:journl:y:2015:i:1:p:3-10. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Logica Banica). General contact details of provider: .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.