Budgeting

Traditional budgets are the most common and oldest forms of budgets. Traditional budgets are budgets prepared by a business based on its prior period’s budget. When a business wants to develop a traditional budget or update it, it takes the previous period’s budget as a base and alters it to obtain an updated budget. This […]

Zero-Based Budgeting Zero-based budgeting is a process that requires the formulation of a budget from zero. In this method, all the business activities are assessed every time the budget is prepared. This budget is developed without making any reference to the base amounts of past budgets. This budgeting starts from a “zero base,” and every

What is a Zero-Based Budgeting? Zero-based budgeting is a process that requires the formulation of a budget from zero. In this method, all the business activities are assessed every time the budget is prepared. This budget is developed without making any reference to the base amounts of past budgets. This budgeting starts from a “zero

Zero-based Budgeting: Zero-based budgeting is a process that requires the formulation of a budget from zero. In this method, all the business activities are assessed every time the budget is prepared. This budget is developed without making any reference to the base amounts of past budgets. This budgeting starts from a “zero base,” and every

Budgeting has different types and each type serves a different purpose. Participative budgeting is therefore one such type of budgeting approach. It is quite evident from the name that participative budgeting is an inclusive approach that involves the contribution of staff from every level of the hierarchy to prepare the budget. A small team usually

Budgeting is one of the most important concepts in modern business and economic activity and the backbone of all scales of financial management. Its importance is portrayed in the sheer aspects of the application budgeting has in ranging from countries, blocs, mega-empires to an individual’s needs. Budgeting is the process through which plans are created

Budgeting is the foundation projects are built upon, budgets are the limiting factor because the amount of finance that is available for a project will then determine how that project is created, how many resources both human and capital are employed, and how that project is executed. A project cannot begin before a detailed budget

Budgetary slack refers to the practice of under or overestimating the revenue or expenditure in order to create a financial cushion in order to increase the likelihood of achieving budget and performance targets and therefore make the actual performance look better than it actually is. Budgetary slack can be considered as a practice associated with

A budget estimates the income and expenditure for any activity or project. Budgets are drawn up with some future aim or objective in mind. For instance, governments create annual budgets and these formal documents contain itemized details of the revenue and expenditure targets for the government. Similarly, corporations prepare their many different budgets. The sales

Zero-based budgeting is an approach used by the company’s management to prepare a budget by taking the base as zero. Unlike other techniques that are used for the formulation of the budget, this technique does not use the previous year as a base year. It is a process used to control the organization’s unnecessary costs.