Modern methods used in performance-based budgeting

Abstract

In this article, the authors main objective is to discuss the modern instruments of the budgeting process within a company - as an important phenomenon for each entity which has implemented a functional system of financial control. However, any entity has the right to choose which method is more efficient for managing its profits, expenses, and revenues. The authors will try to describe every way of budgeting emphasizing the advantages and weaknesses that the practitioners could encounter while implementing each method. JEL: M40, M21