Trends in budgetary control and responsibility accounting

Abstract

Abstract This chapter begins by reviewing the roles that budgetary control systems take in helping managers assure organizational performance and by considering some of the growing criticisms of their efficacy that have been made in recent years. Two distinct views have been taken about the best way to proceed. The first espouses incremental improvement to budgetary control processes, both in terms of linking them more closely to operational requirements and planning systems, and also coping with the issues of rapid change with more frequent budget revision and the adoption of techniques such as rolling budgets. The second suggests the abandonment of budgetary control, replacing it with a variety of alternative techniques that will enable organizations to become more agile and adaptive. The chapter concludes with an outline of the main issues facing control systems designers, and indicates some ways forward for both practitioners and researchers.