Budgeting Technique of Strategic Management

Abstract

The industrial companies' activities must take into account the existence of a balance between income and expenses. In this regard, the budget is the basic tool, and budgeting becomes a systemic economic practice in allocating the financial resources to achieve the objectives set forth by the company strategy. This chapter discusses budgeting as a technique of strategic management. In the companies' activities of budgeting, the following may be used: general and partial budgets; budgets prepared by departments; budgets prepared by products, projects, and activities; fixed and flexible budgets; etc. Thus, to start with, the fundamentals of budgets are analysed, and afterwards, based on them, industrial companies' budgets are elaborated. At the end of this chapter, the budgets thus elaborated are used as techniques of the industrial companies' strategic management.