About the Criticality of Budget
The budget has gradually lost its relevance over time; scholars and managers have attributed certain limits to it which have given rise to considerations regarding the progressive loss of its identity as a planning and control tool and as an instrument with organizational value. Furthermore, in turbulent environmental conditions, from which highly unstable situations can arise, forecasts may not always be reliable and adequate due to the difficulty of constantly adapting and updating data in correspondence with the changing internal and external situations of the company. In practice, moreover, the widespread consideration of the budget as "a ritual to be carried out in the last part of the year, following a predefined calendar and a strict sequence" urges managers to be prudent in preparing the initial objectives. All these limits represent for some scholars and manager the demonstration that the “traditional” budget is now obsolete. The aim of this work is to verify the sensitivity of the literature on the impact of extraordinary events that question the validity of the budget. The methodology we used in this paper is the literature review that led to the evidence of interesting results concerning the budget both seen as a process (budgeting effectiveness) and as a utility of the management control tool.
Keywords - Management Control System, Budget, Qualitative Research.