Date of Submission


Document Type


Degree Name

Master of Science in Accounting




Joseph Puleo


Budget in business

Call No. at the Univ. of New Haven Library

AS 36 .N29 Acc. 1982 no.5


The purpose of this paper is to review the total subject of budgeting in American industry today. The development of budgeting as a management tool has increased over the years and this paper examines the ways in which it can be used most effectively.

Budgeting is first examined purely through a mechanical point of view. The history of budgeting is noted which explains the roots of the process. Next, the budgeting process is explained from its start (forecast of sales) through completion (performance reporting). Controls are also examined from the viewpoint of ensuring that budgeting is done efficiently.

While most textbooks focus on this mechanical aspect, this paper adds two more concepts which are relatively new in an attempt to improve the success of budgeting. Zero-base budgeting illustrates the fact that budgets can become more precise in various areas. Human relation factors are also added since the ultimate success of budgets regardless of the all mechanical elements, depends on how man applies the principles in business.

Finally, the conclusion reached indicates how budgeting principles combined with zero-base budgeting and human relation factors can make the budgeting process a very good tool for controlling profitability in today's uncertain economic times.