OPERATING BUDGET - THEORY AND PRACTICE

A predictive management involves the planning and budgeting of the company's main activities and the control of compliance with the budget provisions, which makes the budget the main component of management control. Throughout the company's activity, no matter how perfect the company's strategy is, a control of forecasts is necessary in order to detect the causes that lead to the appearance of deviations, establish responsibilities and provide the necessary corrective measures. This article aims to present the operating budget of the company, its structure and the stages of the budgeting process. The advantages and disadvantages of using the operating budget as a predictive management tool are also emphasized.