Using Activity Based Budgeting to Control Costs and Improve Business Process Efficiency

The article discusses the issues of organizing sound budget planning of company expenses. Particular attention is paid to the problem of forming budgets for indirect costs. As a tool for determining their value, the ABB method (Activity based budgeting) is proposed, based on a functional cost analysis of costs and an assessment of the planned amount of resource consumption, depending on the level of each type of activity necessary to implement the production program and achieve a given level of income. Recommendations are given for the implementation of process-based budgeting techniques. The advantages of using the ABB method for the purposes of effective control of resources and financial results of activities are highlighted.