PT Pelabuhan Indonesia IV Makassar is a corporation owned by state (BUMN) runs on harbor services field. While doing planning on company work program in one period, company determines the budget to control its expenditure. The purpose of this research is to know the cause of the differences between the determined budget and its realization with variance analysis method.

Based on the research result, every year –for every three years reporting- there is a difference between budget and its realization, the budget is less than the actual cost for several costs that was included in the budget. This proves that a several actual costs were not included in the budgeting process. It means, budget composing process needs to be improved.