Developments on the Predictive Dimension of Budgets in Economic Entities

Author:Univ. Prof. Eugeniu ŢURLEA, Ph.D.; Univ. Prof. Aurelia ŞTEFĂNESCU, Ph.D.; Gabriela Lidia TĂNASE, Ph.D. Student

JEL:G 31, M 10, L 25

DOI:

Keywords:budgets, scenarios, financial performance, decision, management, economic entity

Abstract:
The premise of this research takes into account the results presented in previous articles on the entities’ budgets, which were published by the authors in issue No. 7/2012 and No. 8/2012 of “Audit Financiar” Journal, that have highlighted both conceptually and practically, that management decision-making process depends on the budgeting process for achieving the objectives of financial performance in an economic entity. The present article continues the research by identifying, in a conceptual manner, the informative role of budgets in terms of management of economic entities and by shaping and confirming a new predictive dimension of budgets. In this respect, by resorting to applied research, the authors analyzed, sequentially and in an integrated manner, from a managerial perspective, various scenarios and the impact of their adoption on an economic entity`s financial performance. The research offers a synthesis of the ideas regarding this subject, found in national and international publications.\r\n

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