Diagnosis of the Application of a Budgetary System as an Administrative Management Tool in Industrial Companies in the Department of Santa Ana

Abstract

The objective of this research was to verify the application of budgetary systems as tools for planning and profit control in industrial companies in the department of Santa Ana. This was a descriptive study in which survey and interview techniques were applied to a total of 100 individuals involved in administrative work within industrial companies.

It was found that companies classified as large do apply a budgetary system, but medium and small companies are not yet using it. Some of the companies that do not yet use it stated that the main difficulties in applying the budgeting technique have been: having few specialized staff, lack of awareness from top management, and the costs required to implement it.