BUDGET-FREE MANAGEMENT OF COSTS AND ACTIVITIES AS AN INNOVATIVE ELEMENT OF ECONOMIC MANAGEMENT IN INTERNATIONAL BUSINESS

Abstract

The experience of the operation of successful foreign corporations in market conditions shows that in order to ensure the viability of the enterprise over a long period of time, it is necessary to introduce new methods of the system of economic management of enterprises. Traditional methods of economic management, in particular, budgeting as a corporate management tool, are considered as one of the obstacles to the effective functioning of the business entity. Budgeting as one of the main methods of cost management was relevant in the industrial age, but it is beginning to show its inability in the information society. Budgetless management (Beyond Budgeting) is a modern alternative approach to business performance management, in which the traditional annual budget ceases to be the main control tool in the company. Rejecting traditional  budgeting processes, the company aims to create a highly decentralized organizational system and an adaptive set of management processes. The disadvantages of the concept include the possibility of its non-compliance with the expected results when using Activity-based costing, Balanced Scorecard, etc.methods. According to experts, these technologies are not able to implement new ideas, because the budget and the operational management  system that supports it remain dominant. .Beyond Budgeting enables multi-level decision making where managers make informed decisions based on information that is constantly changing. get, rather than blindly focusing ongoals that were set months ago. Companies unwilling to change their management style may find that the system does not suit them. In it, theultimate goal is not a number, but the strategy of the company's actions for the selected period. Financial forecasts in it slide and are often revised depending on the circumstances.