Budgeting

Question 1

What are the budgeting techniques?

Answer 1

TRIAZP

1. Traditional Budgeting - the previous year’s actual figures are used as a base for the current year’s budget
2. rolling budget - annual budget prepared and broken down by months for
   the first three months and by quarters for the remaining nine months
3. Incremental Budgeting - the previous year’s budget figures are used as a base for the current year’s budget
4. Activity based budgeting - when you budget only for the resources that are needed to met the budgeted production and sales VOLUME
5. zero based budgeting - when you start your budget from scratch every year and redo the reasoning for every expenditure
6. Priority based incremental budgeting - its a comprise of zero and incremental, where you start with the base and then any changes must have good reasoning