Title: The relation between performance-based budgeting and activity-based budgeting

Authors: Hamidrez Vakilifard, Mehdi Zeynali, Rahmatollah Mohammadipour

Addresses: Department of Accounting and Finance, Science and Research Branch, Illam Branch, Islamic Azad University (IAU), Tehran, Iran. ' Faculty Member of IAU, Tabriz Branch, Tabriz, Iran. ' Faculty Member of IAU, Tabriz Branch, Tabriz, Iran

Abstract: Successful and pioneer organisations are trying to combine budgeting process, strategic planning and performance management. Our objective is evaluating implementation of performance-based budgeting (PBB) by using activity-based budgeting (ABB). The research has been done in Telecommunication Organization in Iran and data gathering was done by the means of observation, document analysis and interview. The results of this research indicate that implementation of PBB by using ABB|s abilities can be easier and PBB|s goals which emphasise on efficiency, effectiveness, economy, outputs and outcomes will be reached. This research is as the first step of PBB|s implementation, and it should be continued in order to reach and find the main frame as PBB|s goals.

Keywords: PBB; performance-based budgeting; ABB; activity-based budgeting; strategic planning; performance management; Iran.

DOI: 10.1504/AJFA.2010.034568

American Journal of Finance and Accounting, 2010 Vol.2 No.1, pp.65 - 74

Published online: 07 Aug 2010 *

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