CASE STUDY: INTEGRATED BUDGETING MODEL OF ENTERPRISES

In recent years, corporate budgets are one of the most criticized objects in management accounting. Some scientists suggest improvement budgets, and others - to abandon them. However, recent research shows that companies intend to improve their budgets, rather than abandon them. This research aim is to find out why companies don’t use the proposed budgets to solve the disadvantage of  budget and to suggest how these disadvantage can be reduced. The methods employed in the research include scientific literatureanalysis and synthesis, induction and deduction, comparison, and graphic imaging. The research found that the proposed budgets problems solving methods have many weaknesses. The researchers analyze the separate budgets types, regardless of the fact that companies use combination of budget types. Integrated budget model was formed, which combines two types of budgets: Time Driven Activity Based Budget (TD ABB) and flexible budget. Integrated budget model solves many problems of budgeting. It provides a more accurate planning and adaptation to a changing environment, a more accurate assessment of employees and the company's operation and control efficiency, helps to motivate employees and to avoid budget gaming. It was found that integrated budget would be beneficial for LTD “Arvi fertis". Integrated budget model allow accurate planning and flexibility. This would allow noticing the company’s problems in time and correctly assessing performance of the company. DOI: https://doi.org/10.15544/ssaf.2012.3