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What are the different types of budgets?

-1
1165 views

Budget Types

Q: What are they and how do they work?.

Any thoughts?.

 

 

Budgeting
Zero-based Budgeting
Accounting
Dr. David E. M
37 months ago

6 answers

1

Nothing to add - we've all been to the same wikipedia page...

Bart Groenewoud
35 months ago
Same content - very true. - Hitesh 35 months ago
DITTO - Dr. David E. 35 months ago
0

Operating budget. Analysis and forecast of income and expenses. These could be performed on a monthly, quarterly, yearly basis.
Financial budget. Evaluate the status of a company, is it healthy or not? You need it to manager the assets and the cash flow.
Static budget. It does not change as volume change. E.g. The budget for sale commission could be the same, no matter the amount of sales. In contrast you could have a flexible budget expresses for example in % of sales.
Cash flow budget. A real time update on company expenditures. Is the company managing cash in the right way?
Master budget. Consolidation of all the budget of a company, per brands, departments, etc. You have the global picture of its health.

Paolo Beffagnotti
37 months ago
Master as you have a global picture of your company and cash flow - Paolo 37 months ago
Cash flow is King - Dr. David E. 37 months ago
Succinctly, [fixed, variable and hybrid; cost plus [+] and cost minus [-] and zero-based] with P&L stewardship accountability. - Dr. David E. 35 months ago
succintly but straight to the point - Paolo 35 months ago
Agree - thanks - Dr. David E. 35 months ago
Better explained. - Er. Jangyadutta 35 months ago
Yes-DITTO - Dr. David E. 35 months ago
Ok. - Er. Jangyadutta 35 months ago
Best = FASB - Dr. David E. 35 months ago
0

Good thoughts:

Succinctly, [fixed, variable and hybrid; cost plus [+] and cost minus [-] and zero-based] with P&L stewardship accountability.

Dr. David E. M
37 months ago
What is your favorite type? - Dr. David E. 37 months ago
In my preference, Financial Budget of a company make strategy for managing its assets, cash flow, income, and expenses which is used to establish picture of company's financial health and present a comprehensive overview of its spending relative to revenues from core operations. - Er. Jangyadutta 35 months ago
State of Cash Flow in the US is a different financial statement - Dr. David E. 35 months ago
Ok - Er. Jangyadutta 35 months ago
Much more formal; - Dr. David E. 35 months ago
0

"Annual income twenty pounds, annual expenditure nineteen pounds nineteen shillings and six pence, result happiness. Annual income twenty pounds, annual expenditure twenty pounds ought and six, result misery."

Can't put it better than Mr Micawber in Charles Dickens' David Copperfield

David Cottrell
37 months ago
Smiles! - Dr. David E. 37 months ago
Interesting. - Er. Jangyadutta 35 months ago
Yes-thanks - Dr. David E. 35 months ago
Zero-based budgeting is an approach to planning and decision-making that reverses the working process of traditional budgeting. In traditional incremental budgeting, departmental managers justify only variances versus past years based on the assumption that the "baseline" is automatically approved. - Dr. David E. 35 months ago
Ok. - Er. Jangyadutta 35 months ago
Thanks - Dr. David E. 35 months ago
Spot on! - Bart 35 months ago
Appreciate it - Dr. David E. 35 months ago
0

Out of different budgets Master Budget, Operating Budget, Cash flow budget and financial Budget are preference.

Master budget of a company designed to present a complete picture of its financial activity like sales, operating expenses, assets and income streams.

But operating Budget is analysis of projected income and expenses of a specified time period to create an accurate picture of account like production, labor costs, materials costs, overhead, manufacturing costs, and administrative expenses.

Whereas cash flow budget is a means of projecting how and when cash comes in and flows
Out of a business within a specified time period.

In case Financial Budget of a  company it makes strategy for managing its assets, cash flow,
income,and expenses which is used to establish complete financial picture of company.

Er. Jangyadutta D
35 months ago
Not in the US = Not FASB = confused! - Dr. David E. 35 months ago
Perhaps. - Er. Jangyadutta 35 months ago
USA = FASB - Dr. David E. 35 months ago
The Financial Accounting Standards Board is a private, non-profit organization standard-setting body whose primary purpose is to establish and improve Generally Accepted Accounting Principles within the United States in the public's interest. The Securities and Exchange Commission designated the FASB as the organization responsible for setting accounting standards for public companies in the US. T - Dr. David E. 35 months ago
Ok. Thanks - Er. P.Das 35 months ago
U R welcomed - Dr. David E. 35 months ago
0

Budgets help businesses track and manage their resources. Businesses use a variety of budgets to measure their spending and develop effective strategies for maximizing their assets and revenues. The following types of budgets are commonly used by businesses:
1.Master Budget
2.Operating Budget
3.Cash Flow Budget
4.Financial Budget
5.Static Budget

Er. P.Das C
35 months ago
True but informal - Dr. David E. 35 months ago
Cash Flow is a statement; not a budget - Dr. David E. 35 months ago

Have some input?