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Presenting Performance Based Budgeting Model with Solution approach to a special class of fuzzy linear programming problem(Case Study of Hormozgan Province Gas Company)
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Abstract: (1291 Views) |
| An inefficient budgeting system cannot be expected to make good use of resources, perform effectively, and achieve good governance. The purpose of the research is to present the mathematical model of Performance-Based Budgeting (PBB) with Solution approach of a fuzzy linear programming problem, according to the data related to the real budget of year 2018 for allocating the optimal budget of year 2018 and also forecasting the optimal budget of years 2019-2020. in Hormozgan Province Gas Company. In this regard, while using the Best Worst Method (BWM) to determine the weight of goals, executive programs and products, is considered a linear programming problem with fuzzy constraints, objective function coefficients and right hand sides described by interval expectation of the trapezoidal fuzzy numbers to transform the original problem into an interval optimization problem. This approach allows constraints to be violated as far as it does not overlap the decision maker’s acceptance degree. One of the advantages of this model is the ability to increase or decrease the constraints of the model due to changes in the organization's conditions to deal with inaccurate decision parameters. The results show that this model can, in addition to reducing the complexity of the PBB system, improve the budget diversion index through optimal budget allocation, the allocation of available resources and spending within the framework of goals and executive programs. The results also show the model by predicting and allocating the optimal budget for the coming years, increase the effectiveness of operational activities, reduce the budget deviation index, improve the performance of the budgeting system and thus increase accountability. |
Article number: 15 |
| Keywords: Performance Based Budgeting (PBB), Activity Based Costing(ABC), Best Worst Method(BWM), linear programming problem, fuzzy linear programming problem |
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Full-Text [PDF 1847 kb]
(824 Downloads)
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Type of Study: Applicable |
Subject:
Accounting
Received: 2020/07/11 | Accepted: 2020/09/1 | Published: 2022/01/2
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