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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

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    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.
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    More about this item


    budget; deviations; costs; control; levels of activity.;
    All these keywords.

    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


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