Dynamic budget as a tool of strategic desicion and its application to a business interprise

DYNAMIC BUDGET AS A TOOL OF STRATEGIC DECISION AND ITSAPPLICATION TO A BUSINESS INTERPRISEEsmeray ÖZKANABSTRACTMost lately, the straightness of the countries and managements consideredimportant. The reason for that is the effect of economic balance in countries andmanagements. The duties of the managers in organizations are planning the task of themanagement as it matches the goal, controlling, and organizing. Furthermore, themanagers make decisions of the management missions and visions by using budget.The budget is a financial plan which shows how to use and find the bestsource in a specific time. That means the more management budget effects the countryin a macro level, the more the effects of the management, the decision, and theinspection is going to be in a micro level. The budget of management also meansbudget, plan, and plan of profit. It has close relationship with qualities such as planning,organizing, coordinating, and controlling which have a function of management.The budget of management forms the center of decisions. A budget whichwas formed well, would protect the economic balance of organizations, and make thedecision and its power easier. Even though we can apply the budget to everyorganization, it must have rules for a healthy looking budget. These are including anorganization of management, finding the meaning of authority and responsibility, theplan of the account and the support for the budget which the manager will give.Moreover, the employees need to accept the main target of the budget.Although the budget of management has benefits, it also has restrictions.These are, guessing the wrong estimate, preparing it in a short time, not lettingemployees know about the rules, forgetting the real meaning of budget which is anindirect of decision and placing it as a management, and not being able to prepare aflexible budget.The work was put in a practice in Erbak Uludag in Bursa, Turkey.