| Abstract [eng] |
SUMMARY The topic of this work is quite actual in today’s business society, because all the bigger companies are dealing with the fundamental problem – formation of the budget. Budgetary is the process by which the long - term corporate plan is converted into action. The budget has to be properly organized and then as a system it can bring substantial benefits including: coordination, clarification of responsibilities, control, motivation, and goal congruence. More over properly developed budgets coordinate departments and activities. In this way it helps even to organize all the company. Budgets are being prepared for departments, for functions such as production, inspection, marketing, or for financial and resource items such as capital expenditure, cash, materials and etc. In most of the cases budgets are being prepared and developed by budget committee. The membership in this committee varies between organizations but usually comprises people from various functions of the company. The budget officer, usually the accountant, services the budget committee. His responsibility is to administer the budget when agreed and to provide technical assistance and data during the budget preparation. The budget planning process takes place prior to the budget period and where budgets are prepared on a rolling basis, budget planning is a regular, continuous activity. As a good and proper for developing company we name of flexible budget. This kind of budget is designed to adjust the budgeted cost levels to suit the level of activity actually attained. A flexible budget is useful for the control aspects of budgeting but as it is an important part of planning process to consider what control procedures will be necessary, it is usual to carry out the required cost analyses and breakdowns at the planning stage so that the budget may be flexed in due course if this is necessary. As a practical example of budget formation and budgetary system we selected to analyze the Joint Stock Company “Via Regia”, which one is very well known in Lithuania as a company of PLAZA corporation. We also present and analyze problems of formation and implementation of the budgetary system in this company. |
