Abstract
The article analyses the features of the structure of the budgeting system in conditions of the process-oriented normative method of cost management. The authors set out the peculiarities of budget development in the construction industry, consider the stages of implementation of process-oriented budgeting in conditions of application the process-oriented normative method of cost management in construction industry. Using this model can be very useful for construction industry companies and help them set their goals to achieve performance indicators. DOI: 10.5901/mjss.2014.v5n24p56
Highlights
In conditions of the unstable economic situation the demand for cash flow planning, budgeting and financial analysis of performance increases in almost all construction companies
The authors developed the methodology of introduction of the process-oriented budgeting in conditions of application the process-oriented normative method of cost management [8]
3.1 Determination of quantitative requirements in the basic processes. The presence of this stage does not cancel the obligation of priority of construction budgeting, on the basis of which the indicators of the other budgets are formed in the traditional system of budgeting
Summary
In conditions of the unstable economic situation the demand for cash flow planning, budgeting and financial analysis of performance increases in almost all construction companies. Construction of the budgeting system should be done in close interconnection with the process-oriented normative model of cost management. The process-oriented normative model of cost management is an adaptation of two methods of cost accounting: regulatory accounting and accounting by functions (ABC-costing) [1, 2]. In conditions of application of the process-oriented normative model of cost accounting it is necessary to use costs calculations of construction works with details on key technological and service processes, and to analyze the cost items within these processes for the construction of budgets. Direct costs of construction industry are formed in the framework of these processes. In the context of these processes overhead costs of construction industry are formed [4]
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