Budget process and budget performance in manufacturingcompanies

Companies that try to survive in the intense competition in today's global world must also cope with the dynamic and constantly changing problems arising from the external environment. The continuous fluctuations in the global financial markets affect the real markets after a while. Therefore, companies should perform cash flow and inventory management by considering all variables such as fluctuations in exchange rates, increases or decreases in interest rates, raw material prices and labor wages; and should identify bad and good scenarios within a plan. Main topic of this study is the financial plans showing the estimated values of the companies although they are not realized yet; that is, budgets. In the introductory part, which is the very first part of the study, the subject, target, importance and methodology of the study are explained. The conceptual framework of forming the second and third sections, the budget processes, and types of budgets, scenarios and budget deviations prepared by manufacturing companies were examined. In the fourth part of the study, the effects of budgets on the financial performance of the company, company value, and profitability of the company were investigated. In the fifth chapter, a case study and budget implementation are performed. In the application part of the study, based on the data obtained as a result of the survey from 150 companies were analyzed. According to the results of the analysis, a statistically significant relationship was found between the budget performances of the companies and the budget deviations they followed. In addition, statistically significant relationships were found between the budget performances of the enterprises and the total number of employees, and between the types of programs they follow the budgets of the companies and the budget performances. Besides, none of the companies participating in the research was found to prepare a budget according to the bad scenario.