Performance management through budgets. Drafting and launching the company’s sales budget
Author:
Adriana Mihaela IONESCU, Cristina Elena BÎGIOI
JEL:
M11, M41
DOI:
10.20869/AUDITF/2016/139/789
Keywords:
Forecast, performance, sales budget,
turnover, costs.
Abstract:
In the economic activities enterprises set goals which, if
achieved, enable performance improvement. In this
regard, it becomes necessary to develop forecasts
mentioned in budgets, which are used as tools for
enterprise performance management. Creating an
effective budget system, closely related to the medium
and long-term plans of the company, is the key to
profitable economic activity, which allows to find the right
path to achieving the proposed objective and to promptly
detect any obstacles. The budget is thus a strategy to
improve performance by achieving better productivity,
more efficient money spending, and to motivate
employees to fulfil the budgetary provisions.
In the process of budgeting, the starting point is the
sales budget, based on the sales program to which the
company aims. Within it, the quantity, the selling price
and the projected turnover are broken down into
different time periods. Preparing a budget of marketing
expenditures constitutes a logical consequence of the
commercial activity as defined in the sales budget, thus
allowing the establishment of the costs for the sale of the
company’s products and the commercial margin.
Abstract(97KB)
Article(341KB)