Research Paper on:
Budgeting and Credit Management in Contemporary Society

Unformatted Sample Text from the Research Paper:
as well, especially as is evident in the corporate world of credit management and budgeting. LITERATURE REVIEW Babbini, Christian. "Reality Check: Is traditional budgeting under siege?" CMA  Management; (1999), November: 52. This article discusses budget concerns for organizations, which includes the credit management concerns as well. One concept the article stresses that is coming into  practice in order to overcome the unhealthy relationship between budget variances and monthly reports is called Activity Based Budgeting. This type of credit management is another new technique that  links the credit management process to organizational strategy. It develops a budget that is based on activities rather than by functional areas. It "allows managers to manage costs  rather than their budgets." Credit management becomes the all-powerful law in too many cases, which causes people to manage strictly to their credit and not to the realities of  the competitive environment. Those organizations that continually try to retain their traditional credit management and at the same time implement some of the new forecasting and measurement tools wind  up creating an internal conflict with the budget often continuing to survive. The biggest benefit of a strategic approach to credit management is that "what-if" scenarios can serve to  manage credit more accurately. Managers can examine alternative strategies and total impact on the enterprise, before they make credit decisions. By adjusting the forecasts to reflect competitive reality,  good or bad, and recalculating the resource requirements and associated dollars based on those amounts, credit managers will in the future be able to use a budgeting model on a  continuous basis in order to examine the total impact of evolving strategies. "In our world of tremendous competitive pressure and ever faster change, the annual credit management process has