Introduction/purpose: The activity of managing the budget funds of the Ministry of Defense and the Serbian Armed Forces (MoD and AF) does not accept even minimal mistakes in the procurement of weapons and military equipment (WME). Equipping the Serbian Armed Forces with weapons and military equipment must be economically justified because a large part of the budget is allocated for that purpose. The goal of the research is to look at the economic aspect of treating costs as a prerequisite for the process of equipping the defense system with weapons and military equipment. Methods: For the purposes of the research, we used analytical and descriptive methods in order to see the comprehensive costs of assets that precede the effective equipping of the Ministry of Defense and the Armed Forces with WME. The research included the analysis of 18 review and research papers, which we analyzed in accordance with the Rulebook on equipping the Serbian Armed Forces with weapons and military equipment. Results: The results of the research indicate that economic justification is expressed implicitly by the ratio of intangible benefits and achieved goals to the invested funds. The most common reason why economic justification is not expressed explicitly by the difference between the initial investment and the final asset quantity is the existence of a number of circumstances for making wrong investment decisions. Also, if the costs are not considered in detail during the entire life cycle of the investment, it can be assumed that the planned target result is not certain. Conclusion: The research indicates that not considering costs during the entire life cycle of the investment is the main reason for unplanned investments in the later stages and the emergence of numerous problems in the functioning of the defense system.

The need for constant control of financial assets and related financial statements is a process that poses significant challenges. They are reflected both in the rules and in the different methodological approach whose implementation depends on many factors, primarily on the knowledge and experience of auditors who transfer their knowledge and experience to others. Once adopted, the report must not have elements of rigidity, because possible corrections in the perspective may indicate the shortcomings of the previous ones. In order for the auditor's reports to be adequate, the auditor's communication with the audited entities, i.e. its representatives, must be adequate. The ways of communication and data collection will be discussed in the paper itself. The reliability of the evidence collected by auditors depends on the method of data collection, which will also be one of the issues considered in the paper. The application of various methods of testing internal control depends on the conditions of their application.

Investing in capital projects accelerates the development of business entities and increases the effectiveness of business. The Aim is to invest in the appropriate new growth and development with less cost. In order to pay the investment to pay off, you must take care of the selection of the project type and purpose and the source It will be funded from. The Development of science has followed the needs of business, but since the connection between science and practice should be mutual, business entities have practically implemented scientific achievements and provide feedback to science. Thanks to this relationship, science has come to the indicators that facilitate business entities, including the beneficiaries of budget funds, to make regular decisions when choosing projects to invest in. The Proper selection of capital investments is the starting point of further activity of each beneficiary budget, which should positively affect economic growth and development, as well as to satisfy the general and common needs of society.

Contemporary capitalism, with all of its contradictions and variability of existence, dominates the present. Even though it retained its basic characteristics of classical capitalism, its peculiarity is present in socially-productive relations that are in mutual contradiction. Modern capitalism is still capitalism. The aim of this paper is to research the relationship between contemporary capitalism and sustainable economy and to give an answer what is necessary for those two to be connected.

The development of more complex forms of organization of the company is to create the conditions of a small number of complex economic, but also organizationally complex and more complicated corporate organizations whose successful conduct of the owners often did not have enough resources, so they hired a professional and competent teams of experts who are trusted with the management of such organizations. In exercising the power of new ideas and concepts based on knowledge, managers in corporations are becoming an indispensable element of every company will be able to change, adapt and create new opportunities to compete successfully in a changing business environment. However, the transfer of responsibility for the management of the corporation managers has resulted in the emergence of abuse of senior management positions in order to realize their own interests. The main objective of this paper is to show how unlike traditional enterprise, today we have a situation in which such property owners corporation is a conceptual and thoughtful decision managers, which should represent the members of their intellectual property.

The beginning of this century brought profound changes in the approach to strategic management, as companies faced a faster pace of change in the environment, as well as an increased volume of information and knowledge. While managers previously made strategic decisions within the framework of a limited amount of information, today they are expected to effectively manage knowledge, both organizational and competitive. Organizational knowledge management has become a key factor in making the right decisions and achieving competitive advantages. It includes not only collecting and analyzing data, but also the ability to use knowledge in the right way, through innovation, process improvement and rapid adaptation to market changes. Top management must now integrate knowledge management into strategic management in order to ensure the long-term growth and sustainability of the organization. Given that knowledge management requires the engagement of key people within the organization to carry out this process, managers are facing new challenges. Managerial competencies are becoming the focal point of this transformation. Increasing the individual competencies of each manager becomes necessary so that the organization can function as a whole that effectively uses its knowledge. In addition, the development of managerial competencies must be directed towards the management of different types of knowledge – from tacit (informal, experiential) to explicit (formal documentation and procedures), and enable synergy between these types. The development of managerial competencies and knowledge management are not separate processes, but take place in parallel. Managers must constantly improve their abilities in order to be able to effectively manage different aspects of knowledge, while the organization must develop the capacity to quickly transfer and apply new knowledge in daily operations and strategic planning.