15. Using Budgets Modeling Unit Cost of Production

Under the conditions of a globalised market, organisational entities must used econometric models regarding the preparation of budgets in general and of those by production functions in particular. Under these conditions, the budget is a managerial tool, and budgeting becomes a systemic management technique for achieving the proposed managerial objectives. The models cover several types of budgets, namely: general or partial budgets; fixed or flexible budgets; budgets by departments; budgets by products, projects or item. At the level of the organisational entity, econometric models are developed concerning the general budget, the production budget, the budget of the commercial activity, budget of investments, budget of the research-development budget, the treasury budget. The model regarding the budget of production unit budget has certain specificity. The drawing up of production costs budgets, implies drawing up the following budgets: raw materials and direct materials expenditures budget; expenditure budget of direct wages, the contribution to the social insurances and the afferent social protection; direct expenses budget for electric power in motor purposes; technological fuel direct expenditures budget; the budget of direct expenditures with the fixed means’ redemption; indirect manufacturing costs budget; the general budget of manufacturing costs; unitary costs budget per product.