Activity based budgeting : a conceptual model and implementation in R.

Abstract

An important budgeting system in enterprises is activity-based budgeting (ABB). While it is widely applied in practice there is the lack of a clear definition of the activity-based budgeting domain and a lack of a common language to facilitate the communication of domain specific knowledge across different domains, including accounting, finance, management control, and information technology (IT). This thesis addresses this gap by providing a conceptual definition for this domain and establishing a ubiquitous language that enables understanding and integration across the different domains.This thesis develops three key artifacts to solve these problems: a conceptual model, an operational model, and an implementation in R-tidyverse. The conceptual model provides a high-level abstraction of the ABB domain. It defines the components relationships and processes through UML diagrams, while establishing a common language for effective collaboration. The operational model translates the presented abstractions into a detailed workflow. It includes variables, relationships, decision-making processes, and key actors. The implementation in R demonstrates the use of the conceptual and operational model and provides a prototype for future implementation.An advanced design science research (DSR) is used, including a use-case evaluation method to demonstrate the alignment of the proposed models with the ABB domain requirements. It is called an advanced design science methodology, because along with the classic design science it also covers the key steps of the domain engineering methodology and the domain-driven design (DDD). The domain engineering methodology focuses on developing reusable artifacts and knowledge for a specific domain. This process employs this methodology by including its three key steps, the analysis, design and implementation of a specific domain. On the other hand building a ubiquitous language underlying the ABB aligns with the DDD.This thesis establishes a foundation for integrating ABB processes into diverse organizational contexts by providing a definition of the ABB domain and a structural approach for its application, enhancing interdisciplinary understanding, and paving the way for further research in both the academic and industrial setting.