PERFECTING THE METHODOLOGY FOR ELABORATING THE BUDGETS OF INDIRECT EXPENDITURES; CALCULATING AND ANALYZING THE DEVIATIONS FROM STANDARDS IN THE ROMANIAN CHARCOAL MINING INDUSTRY - Polish Journal of Management Studies

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PERFECTING THE METHODOLOGY FOR ELABORATING THE BUDGETS OF INDIRECT EXPENDITURES; CALCULATING AND ANALYZING THE DEVIATIONS FROM STANDARDS IN THE ROMANIAN CHARCOAL MINING INDUSTRY

Abstracts > Vol 1


PERFECTING THE METHODOLOGY FOR ELABORATING THE BUDGETS OF INDIRECT EXPENDITURES; CALCULATING AND ANALYZING THE DEVIATIONS FROM STANDARDS IN THE ROMANIAN CHARCOAL MINING INDUSTRY

Man M., Dima I.C.*


Abstract

Companies activity should permanently be carried on according to the balance relation between incomes and expenditures. Nowadays, when dealing the worldwide economic crisis, companies   do not manage to maintain such a balance; the expenditures determined by manufactured production overpass the incomes resulting after selling the production. Such things happen even when certain fields are subsidized by the State budget. Under such circumstances,   the problem that managers have to face is that of finding out certain methods that allow them to size and control the previously mentioned balance relation. With these in view, we consider that the budget can become a matching tool and especially an  improvement  device of the relation between expenditures and incomes; costs budgeting becomes a systematic economic practice that implies the carrying out of a formal process of allocating financial resources with a view of achieving the goals formulated  for the following  period. (JEL: G31, H72, C10)

Key words: indirect production expenditures, standard expenditures, fixed expenditures, variable expenditures, mixed expenditures, the budget of indirect production expenditures, amount deviation, capacity deviation, and   efficiency deviation.


Introduction

The budget is currently considered to be a financial plan. It is the quantitative expression of an activity plan prepared during a previous period of time as compared with the period   it refers to.
Budgeting consists in displaying in a table the data resulting after making predictions. Budgets are elaborated for short periods of time, usually for a calendar year, distributed according to trimesters and months. When the problem   of varying the activity occurs, the adaptation of the budget to the new circumstances is done through previously elaborating certain flexible budgets predicted for several levels of activity.
At the same time, the problem of creating within a company certain autonomous sub-systems also occurs; they are called expenditures centers that target the improvement of employing resources and getting a profit. An expenditure   center is an identifiable function or a part of the company for which expenditures can be identified. The profit center is an extension of this idea on a larger scale where not only costs but profits too are identifiable. The budget center is defined   as a part of an entity upon which control can be exerted and for which a budget can be elaborated [5]. Accordingly, one can notice that a budget center can be an expenditures center, a group of expenditures centers or can coincide with a profit center.
Accordingly, an expenditure center administrates a partial budget, a component of the yearly general budget. The attribution of responsibilities according to expenditures centers can be done hierarchically [1].
Further, in order to exemplify the above data, we are going to consider a production department of a coal mining unit as an expenditures center ? A production department represents a structural sub-division administratively clearly   outlined.


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Summary

Budgeting consists in displaying in a table the data resulting after making predictions. Budgets are elaborated for short periods of time, usually for a calendar year, distributed  according  to trimesters and months. When the problem of varying the activity occurs, the adaptation of the budget to the new circumstances is done through previously elaborating certain flexible budgets predicted for several levels of activity.


References

[1]   C
alin O.,  Man M.,  Manolescu M., Contabilitatea de gestiune si calculat ia costurilor, C. F. C ALIN  Economic Tribune Publishing House, Bucharest 2005.
[2]   C
alin O., Man M., Nedelcu M.V., Contabilitatea manageriala, Didactic and Pedagogic Publishing House, Bucharest  2008.
[3]   Dima I. C., Man M., Control de gestiune, AGIR Publishing House, Bucharest 2003.
[4]   De Rong
e Y.,  Cerrada K., Controle de gestion, Pearson Education France 2005.
[5]   Lucey T., Costing, DP Publication, Aldine Place, London 1993.


DOSKONALENIE METODOLOGII OPRACOWYWANIA BUDZETO W WYDATK OW POSREDNICH; OBLICZANIE I ANALIZA ODCHYLEN  OD STANDARDOW W PRZEMY SLE WEGLA DRZEWNEGO W RUMUNII


Streszczenie

Dzialalnosc przedsiebiorstw powinna by c  stale utrzymywana zgodnie z prawem rownowagi dochodow i wydatk ow. Obecnie, maj ac do czynienia na calym s wiecie z kryzysem gospodarczym, firmy nie radza sobie  z utrzymaniem takiej rownowagi; wydatki okre slane sa przez produkcje  pomijaja c przychody wynikajace ze sprzedazy produkcji. Takie sytuacje maja   miejsce nawet wtedy, gdy niektore obszary sa dotowane przez budz et pan stwa. W takich okolicznosciach, problemem dla managero w jest dobranie okreslonych metod pozwalaj acych na mierzenie i kontrole  wczesniej wspomnianej rownowagi. Maj ac to na uwadze,  uwazamy, ze budzet mo z e stac sie narze dziem lacz acym, w szczegolno sci sluza cym do poprawy zalez nosci miedzy wydatkami i dochodami, a budz etowanie  kosztow staje sie systematyczna praktyk a  gospodarcza, ktora sugeruje, z e prowadzenie formalnego procesu przyznawania srodkow finansowych pola czone jest z zamierzeniem osiagni ecia celow wyznaczonych  w nastepnym okresie.





 
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