CASH BUDGETING PRACTICES AND COMPUTER USE BY AUTOMOTIVE DEALERSHIPS

Has two general objectives: to evaluate auto dealers′ current cash budgeting practices, and to make an assessment of the potential for using a computerized cash budgeting model – a model which can have a great impact on the financial management of auto dealerships. However, a decision to utilize a computerized model is directly affected by the dealers′ current financial management practices, as well as attitudes and perceptions concerning computers and budgets. Analyses a sample of 500 automobile dealerships located throughout the USA using multiple regression and discriminant analysis. Results indicate that several specific variables are significant in auto dealerships′ cash planning and budgeting processes, including the level of used car inventory, dealers′ attitudes towards sales forecasts and the ability to predict economic conditions.