Abstract
The article contains a theoretical and methodological aspects of budgeting expenditures on compensation of employees based on the determination of optimal values of the limited financial resources of the company. We propose a logical organization of budgeting the expenditures using linear programming. Recommended are calculations and measures to control the cost of remuneration in accordance with the objectives of the company. DOI: 10.5901/mjss.2014.v5n24p388
Highlights
Budgeting system is of special importance to generate information which is necessary to prioritize company’s current activities and to provide a basis for assessing opportunities to improve compensation expenses
We investigate the possibility to apply the approach proposed to cost budgeting of employees pay on the example of JSC "Shoe Factory" Spartak, one of the oldest shoe companies in Russia
Based on Based on uncorrectable correctable coefficients coefficients. These results demonstrate that the use of linear programming in budgetary management of expenses for compensation contribute to a more efficient funds allocation for the payment of workers
Summary
Budgeting system is of special importance to generate information which is necessary to prioritize company’s current activities and to provide a basis for assessing opportunities to improve compensation expenses. It allows to generate information about distribution and consumption of resources allocated for employee pay and stimulating payments to employees. In order to harmonize current and future challenges and the results achieved in effective use of financial resources for personnel compensation in the budget cost management it is advisable to use linear programming which contributes to optimization of expenditure level for compensations for short term and the creation of a system of coordinates for both the business as a whole, and for expenditure on compensations
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