Types of Budgeting
Also known as priority-based
What is value based budgeting?
Process of making a money plan for a business or individual
What is budgeting?
Step one of creating a budget.
What is your net income?
Money set aside for vehicles is a type of this budget.
What is personal budgeting?
Cash Inflow and Outflows are a type of this budget.
Budget is prepared for one level of production volume
What is a static budget?
A system that records, researches, and analyzes actions that lead to costs for a company.
What is activity based budgeting?
Budget for human capital
What is corporate budgeting?
Utilities and groceries are a type of this budget.
What is personal budgeting?
Budget adjusts to activity/volume levels of company.
What is flexible budgeting?
A budget that is prepared by taking the current period's budget or actual performance and using it as a base and then adjusting it.
What is incremental budgeting?
Spending money on the things you value most in life.
What is value based budgeting?
Analyzing and justifying the value of every single item on an expenditure list
What is priority based budgeting?
Budgeting method where all expenses must be justified and approved in each new budget period
What is zero-based budget?
Step five of creating a budget.
What is adjusting your income?
Say that a company paid its employees a total of $400,000 in salaries last year. Next year, they will increase those employees' wages by 10% and hire six new employees, who will receive a base salary of $25,000
What is incremental budgeting?
Budgeting technique in which all expenses must be justified for a new period or year.
What is zero-based budgeting?
The full mix of benefits or economic value which it promises to deliver to the current and future customers who will buy their products and/or services.
What is a value proposition?
Step six of creating a budget
What is reviewing your budget?
Budgeting when if you make $3,000 a month, everything you give, save or spend should add up to $3,000.
What is zero-based budgeting?