Abstract:

Economic and technologic developments experienced after industrial revolution caused some problems required to be solved by accounting science. Costing, pricing, short-term and long-term planning and budgeting, activity control and cost management issues are the primary problems. Especially after the Industrial Revolution which affects the world economy and consequently trading; the factors like machinery instead of the manpower, development of the service concept, increase in the products produced and increase in the means of transportation and communication led to the significant increases in the number of enterprises. In addition to this, economic conditions after the great war caused a growth in number and volume of enterprises in Continental Europe and USA and the needs arisen in terms of business management triggered the improvement of business budgets which were the financial and administrative controlling instruments in that process. Developments witnessed in budgeting are substantially in line with the developments occurred in democratic and parliamentary systems. While the government budget in Great Britain and Continental Europe was providing advantage for a period more than a century; applying government budget in the USA was established afterwards and the business budget have been developed by the industrialists considering government budget’s advantages. Analysing the history of business budget is the objective of this article as from the beginning to the 1940s. 

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