How strategic budgeting can control cost while improving performance

✍ Scribed by Audrey Taylor

• Publisher: John Wiley and Sons
• Year: 2009
• Tongue: English
• Weight: 139 KB
• Volume: 20
• Category: Article
• ISSN: 1044-8136
• DOI: 10.1002/jcaf.20484

✦ Synopsis

Abstract

When managers focus on overall goals in making resource choices, wiser choices are made, efficiencies encouraged, and collaboration fostered. It is simple, fast, and flexible. To that end, this article presents a format for budgeting called strategic budgeting. This new budgeting format addresses the frustrations of implementing—and being held accountable for—a budget. It uses the concepts of information symmetry, mutual monitoring, and a group budget buffer (a pool that supports the funding of nonbudgeted expenditures). Strategic budgeting thus ensures that funding follows strategic intent—in other words, what actually supports a company's goals. © 2009 Wiley Periodicals, Inc.