Economics and Rural Development, Volume 4, Number 2


Ramune Pockevičiūte
Alytus City Municipality Administration


Successful business operations are hardly possible without planning. Therefore presently there are extensive discussions about
the importance of planning business activities and estimating the resources required to achieve the objectives set by an enterprise. For
this purpose, scientists and practitioners suggest that enterprises should implement a budgeting system. This paper introduces a budgeting
model for agricultural holdings using the Activity Based Costing (ABC) approach. The topic of the paper was chosen in view of
the fact that such a combination of accounting management elements is not broadly used by Lithuanian agricultural holding. The key
objective of this paper is to present the budgeting system as an important tool in planning and managing the business of an agricultural
enterprise. This paper looks into the theoretical principles and provides a practical model of the budgeting system. The performed
research leads to a conclusion that more accurate production cost calculations, budgeting, and budget control are the safeguards,
which help to prevent business failures in the changing and adverse business environment.

Keyword(s): budget, budgeting system, cost, costs, activity, Activity Based Costing (ABC)


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Economics and Rural Development ISSN 1822-3346 / eISSN 2345-0347

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