Budgeting - Topic 6

Question 1

Zero Based Budgeting

Answer 1

Zero-based budgeting is a budgeting process that starts from zero and requires all expenses to be justified for each new period, rather than simply carrying forward previous budgets. In other words it assumes that no expenses are necessary and requires justification for every expense.

Question 2

Beyond Budget

Answer 2

Beyond budgeting challenges advocates for a more flexible and adaptive approach to budgeting and performance management, rather than relying on a rigid, annual budget.

Question 3

Incremental budgeting

Answer 3

incremental budgeting is a budgeting process that involves using the previous period’s budget as a starting point and adjusting it incrementally for the upcoming period. it assumes that the previous period’s budget is an accurate baseline and only requires adjustments for changes in revenue, costs, and other factors.

Question 4

Continuous budgeting

Answer 4

is a budgeting process that involves continuously updating and revising the budget based on changes in revenue, costs, and other factors throughout the year. Rather than setting a budget at the beginning of the year and adjusting it periodically.