Budget Control and Cost Behavior offers a clear, practical look at how budgets shape business costs.
This study draws on economics, psychology, organization theory, mathematics, and accounting to explain budget setting and its effects on performance.
The book outlines three complementary approaches:
- A mathematical model that links aspiration levels, budgeting, and actual performance.
- An empirical investigation that tests how people respond to different budget conditions.
- A linear programming framework that helps plan and coordinate budgeting decisions.
What you’ll gain:
- A practical view of how budgets influence behavior and cost control in a real firm.
- An explanation of budgeting concepts, standards, and the role of information in the process.
- Methods for evaluating budgets and understanding different budgeting policies in practice.
Key topics include budgeting standards, the nature of aspiration levels, empirical findings from experiments, and structured approaches to budget planning and optimization. The text is suitable for students and professionals seeking a rigorous, accessible introduction to cost behavior and budget control.
Ideal for readers of management accounting, budgeting practice, and operations research.