Statistic-Based Method for Budgetary Control Limits Setting—Renewed Approach in the Context of Industry 4.0

Zdzisław Kes , Krzysztof Nowosielski


The chapter presents the issue of budget variance analysis (BVA), as one of the most important processes inManagement Control (MC). Based on the current state of knowledge, shortcomings in methods for setting the budgetary control limits (BCL) were indicated. In short, BCL enables focusing on a significant budget variances. In business practice, BCL setting is mostly based on intuition and individual judgment of managers rather than on numerical calculation using IT systems. In the era of Industry 4.0 this kind of solutions are far from being enough to make right decisions in the right way. Therefore, the main research objective of the presented work was to develop effective and applicable method for BLC setting, which works in an objective manner. We decided to renew the idea of Shewhart’s control charts implementation in the BCL setting. Design science research (DSR)method was used to reach the research objective, starting with problem definition, through developing a new method for BCL setting, ending with its test and evaluation
Author Zdzisław Kes (BM / DCATMC)
Zdzisław Kes,,
- Department of Cost Accounting, Taxes Management and Controlling
, Krzysztof Nowosielski (BM / DACIaQM)
Krzysztof Nowosielski,,
- Department of Process Management
Publication size in sheets0.9
Book Hernes Marcin, Rot Artur, Jelonek Dorota: Towards Industry 4.0 — Current Challenges in Information Systems, Studies in Computational Intelligence, no. 887, 2020, Springer, ISBN 9783030404161, [9783030404178], 266 p., DOI:10.1007/978-3-030-40417-8
Hernes_Rot_Jelonek_4.0_Current_Challenges.pdf / No licence information (file archived - login or check accessibility on faculty)
Keywords in EnglishManagement Control Systems, Budgeting, Budgetary Control Limits, Control Charts, Design Science Research
Languageen angielski
Kes_Nowosielski_Statistic_Based_Method_For_Budgetary_Control.pdf 477,97 KB
Score (nominal)20
Score sourcepublisherList
Citation count*
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UwagaThe project is financed by the Ministry of Science and Higher Education in Poland under the programme “Regional Initiative of Excellence” 2019–2022 project number 015/RID/2018/19 total funding amount 10,721,040.00 PLN.
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