The purpose of this study is to determine alternative ways of controlling costs that are more reliable, updated and useful than traditional budgeting. To identify the advantages and disadvantages of the budgeting process. To determine whether a South African company combines different planning methods to suit its specific planning needs. To determine how key performance drivers for planning purposes are chosen in the event that the company makes use of key performance drivers. Finally, to determine the relevance of traditional budgeting when combined with alternative planning methods for a South African company. This study should contribute greatly to how unique the budgeting process has become in the modern economy. Unlike previous studies that only focussed on abandoning budgets completely or on alternative methods, this study will investigate the use of the traditional budget in conjunction with alternative planning and the extent of alternative planning methods being used. As far as it could be determined, this will be the first study of the implementation of alternative budgeting in conjunction with the traditional budget in a South African context. The study will also make a unique contribution by investigating new combinations of planning techniques used by a South African company. For this mixed-method study, one single case was selected for an in-depth analysis of the budgeting process. Data was collected by means of questionnaires that were given to all participants of the budgeting process and a once off face-to-face in-depth interview with the CFO of the company. It was concluded that the budgeting process is unique for this South African company. It includes various alternative planning methods used in conjunction with the annual budgeting process. Disadvantages and advantages of the budgeting process were discussed as found form previous research and from the current study. Alternative methods of planning used by the company in conjunction to the traditional budget were identified and discussed. Further research in a South African context would prove very interesting on the unique budgeting processes implemented by South African companies today.
Dissertation (MCom)--University of Pretoria, 2012.