Research Studies on Budgeting

Running Head: Research Studies on Budgeting
Budgeting
Managerial Accounting
University Name-
[Type the author name]

Research Studies on Budgeting 1
Executive Summary:
In this report we will discuss that how the function of budgeting is significant for a
business organisation. Budgeting is an important function for every business irrelevant of the
fact that what kind of nature it consisting. To properly understand the concepts of budgeting,
we have taken the research articles of two real companies. We have selected one Profit
gaining and one non-profit gaining company for clearly understanding the concepts of
budgeting function. The evaluation of both the organisations has reflected that it is majorly
required for every company to perform the function of budgeting before the commencing a
particular business project in any year. It helps the organisation to collect the required
information for decision making process.

Research Studies on Budgeting 2
Table of Contents
Executive Summary:.............................................................................................................................1
Introduction:..........................................................................................................................................3
Process of Budgeting.............................................................................................................................3
The concept for using the budgeting in the business..............................................................................4
Purpose of BUDGETING:.....................................................................................................................4
Substantial expenditures....................................................................................................................4
Long term period...............................................................................................................................5
Irreversibility.....................................................................................................................................5
Complex decisions.............................................................................................................................5
Users of budgeting function:.................................................................................................................5
Purpose of budgeting:............................................................................................................................5
Functions of budgeting:.........................................................................................................................6
Limitations of Budgeting:......................................................................................................................7
Research Studies in context of Budgeting:............................................................................................8
Study 1: Impact of Budget based compensation schemes:.....................................................................8
Purpose of Study:..............................................................................................................................9
Research Question:............................................................................................................................9
Study 2: Formation of operation budget for a non-profit organisation:.................................................9
Purpose of study:...............................................................................................................................9
Research question:.............................................................................................................................9
Differences in the studies......................................................................................................................9
Background of the companies..........................................................................................................10
Purpose of the studies......................................................................................................................10
Similarities in the research studies:......................................................................................................11
Lessons from Research Study 1:..........................................................................................................11
The learning outcomes of Research study 2:.......................................................................................11
Conclusion:..........................................................................................................................................11
References...........................................................................................................................................12

Research Studies on Budgeting 3