Improving Business Planning in Locally Owned Enterprises

Abstract

This study examines how variance analysis and management accounting tools can improve business planning in locally owned enterprises. A case study of “A” Water and Heat Distribution Company was conducted using financial data from 2022-2024 to analyze budget-performance variance and identify factors affecting revenue growth. Results show that 73.2% of revenue growth was due to price increases and 26.8% due to sales volume changes, indicating a strong dependence on external factors. The findings suggest the need for more flexible budgeting and improved cost management. This study highlights the practical application of management accounting techniques in enhancing business planning for locally owned enterprises.