TY - JOUR
T1 - Explaining functional orientation of the budget
T2 - a survey of Swedish organizations
AU - Collin, Sven-Olof
AU - Umans, Timurs
AU - Lidqvist, Kristian
AU - Tjörnebrant, Kristian
PY - 2019
Y1 - 2019
N2 - The paper presents a congruence model where factors belonging to the environment, to the corporation, and to the management control system of the corporation are expected to influence the functional emphasis put on the budget, i.e., the function of coordination, responsibility and evaluation. Through a test performed on 111 Swedish corporations, we find indications that the budget is very much alive; it appears to focus more on dealing with external situations than with internal characteristics; and it appears to be part of the formalisation of the organisation. We draw these conclusions based on our findings that suggest that the budget is being used mainly as a coordinative device, and less as an instrument for evaluating actions.
AB - The paper presents a congruence model where factors belonging to the environment, to the corporation, and to the management control system of the corporation are expected to influence the functional emphasis put on the budget, i.e., the function of coordination, responsibility and evaluation. Through a test performed on 111 Swedish corporations, we find indications that the budget is very much alive; it appears to focus more on dealing with external situations than with internal characteristics; and it appears to be part of the formalisation of the organisation. We draw these conclusions based on our findings that suggest that the budget is being used mainly as a coordinative device, and less as an instrument for evaluating actions.
KW - Sweden
KW - budget
KW - congruence model
KW - functional emphasis
U2 - 10.1504/IJAF.2019.10022797
DO - 10.1504/IJAF.2019.10022797
M3 - Article
VL - 9
SP - 28
EP - 46
JO - International Journal of Accounting and Finance
JF - International Journal of Accounting and Finance
SN - 1752-8224
IS - 1
ER -