Abstract:

Nowadays budgets have an important role in the business area. By presenting   a brief history of budgeting and its origins can offer us a perspective and knowledge in understanding the current principles of budgeting. The study of budgeting represents actually an interdisciplinary study, a blend between accounting, statistics, behavioral science, engineering, economy and politics.

Business budgeting developed substantially during the period 1895-1920 due to the evolution of the industrial engineering and cost accounting. There are several factors that contributed to this, such as: industrial development, production standardization, development of standard costs, budgetary literature increase and competition on the market.