What are the contents of the budget method?

There are actually six main budgeting methods, as follows:

I. Fixed budget

Fixed budget, also known as static budget, is a budget method that fixes the business volume of an enterprise at a certain expected level during the budget period and confirms the estimated amount of other projects on this basis. In other words, during the budget period, the cost and profit information on which the financial budget is based is only confirmed on the basis of the predetermined business level. Obviously, the prerequisite for a budget based on a fixed business level to survive in the future is that the expected business volume is consistent with the actual business volume (or the difference is very small), which is more appropriate.

Disadvantages of fixed budget: first, it is too rigid, because the business base of budget preparation is a certain business volume assumed in advance, so in this way, no matter what changes can actually take place in the business volume level during the budget period, the budget can only be based on a certain business volume level determined in advance; Second, the comparability is poor. When there is a big difference between the actual business volume and the business volume on which the budget is based, the actual number of related budget indicators and the budget number will lose comparability because of the different business volume basis. For example, when preparing a financial budget, the estimated business volume is 90% of the production capacity. The total cost budget is 40,000 yuan, while the actual business volume is 100% of the production capacity, and the actual total cost is 55,000 yuan. Compared with the budget, the actual cost is greatly overspent. However, the difference between the actual cost and the budgeted cost includes the cost difference increased by the increase of business volume, which is meaningless for cost analysis.

Second, flexible budget.

On the basis of cost (expenditure) customary categories, according to the dependence between quantity, cost and profit, and considering the possible changes in business volume during the planning period, flexible budget has formulated a set of expenditure budgets suitable for various business volumes, so as to reflect the expenditure levels that should be supported under various business volumes respectively. In budgeting, variable costs increase or decrease with the change of business volume, while fixed costs remain stable within the relevant business volume. The budget compiled according to a series of achievable expected business volume levels can adapt to any production and operation level of the enterprise during the budget period. Because this kind of budget is flexibly adjusted with the change of business volume, it has a wide scope of application and strong flexibility, so it is called flexible budget or variable budget.

Advantages of flexible budget: First, the budget is wide; Second, it is comparable. Flexible budget is generally applicable to budget items such as costs (expenses) and profits related to the business volume of budget execution units.

The compilation procedure of flexible budget is as follows:

(1) Confirm a related category and set it to 70% ~ 1 10% of normal capacity.

(2) Select the measurement unit of business volume.

(3) According to the method of cost behavior analysis, the cost of the enterprise is divided into fixed cost and variable cost, and the cost function (y=a+bx) is determined.

(4) Determine the budget amount of each business level in the budget period.

Third, incremental budget.

Incremental budget refers to the method of adjusting the original expenditure items and compiling the budget on the basis of the base period cost level, combined with the budget business level and cost reduction measures. Incremental budget method is relatively simple, but it is based on the past level, in fact, it admits that the past is reasonable and does not need improvement. Because the original cost items are retained or accepted without analysis, the original unreasonable expenses can continue to be spent uncontrollably, resulting in unnecessary expenditure rationalization and budget waste.

Fourth, zero-based budgeting.

Zero-based budget, or zero-based budget, means that when preparing a budget, all budgetary expenditures are based on zero, regardless of the past situation, starting from actual needs and possibilities, studying and analyzing whether budgetary expenditures are necessary and reasonable, and comprehensively balancing and confirming budgetary expenditures.

Zero-based budgeting is an expense budgeting method, which is different from the traditional incremental budgeting. When budgeting, all budget expenditures are based on zero, and the necessity, rationality and amount of expenditures are considered item by item from the actual needs and possibilities, so as to confirm the budget cost. The basic method is:

(1) According to the overall objectives of the enterprise and the specific tasks of each department, all relevant departments within the enterprise propose the nature, purpose and amount of various business activities that need to occur during the budget period.

(2) Cost-benefit analysis of various budget schemes. That is to compare the cost and income of each business activity, weigh the gains and losses, and judge the rationality and priority of each expenditure.

(3) According to the objective needs of production and operation in a certain period and the actual availability of funds, give priority to all kinds of projects, allocate funds and implement the budget.

(4) The division of non-deferrable expenditure items and deferrable expenditure items should be allocated among expenditures according to the amount of disposable funds in the budget period when preparing the budget. For projects that cannot be delayed, priority should be given to expenditures. Then, according to the need and possibility, according to the priority order of expenditure items, confirm the expenditure of deferrable items.

The advantage of zero-based budget is that it is not limited by existing rules and regulations, and all expenses are based on zero. This can not only reduce the capital expenditure, but also effectively use the limited funds in the most needed places, thus mobilizing the enthusiasm and creativity of all departments, doing their best, rationally using funds and improving efficiency.

The zero-based budget has a large workload and a long budget preparation time. In order to overcome this deficiency, it is not necessary to prepare the budget with zero-based budget every year, but only once every few years.

Verb (abbreviation for verb) normal budget

Regular budget refers to a budget method with a constant accounting period (such as calendar year) as the budget period. The advantage of this method is that it is convenient to compare the actual number with the budget number, and it is also conducive to the analysis and evaluation of the budget implementation. Its disadvantages are: first, blindness. Because the regular budget is usually carried out two or three months before the start of its implementation year, it is difficult to predict the situation in the later period of the budget period, especially in the changeable market, many data can only be estimated, which is blind. Second, invariance. In the process of budget implementation, many unforeseen factors will hinder the counseling function of the budget, or even make it invalid, and the budget cannot be adjusted in the process of implementation. Third, discontinuity. The continuity of the budget is poor, and the regular budget only considers the business activities of one fiscal year. Even if the budget is revised in the middle of the year, it is only for the remaining budget period, and the artificial budget discontinuity for the next fiscal year is rarely considered.

Rolling budget of intransitive verbs

Rolling budget, also known as continuous budget, refers to a budget method that separates the budget period from the accounting period, continuously supplements the budget with the implementation of the budget, and rolls backwards one by one, so that the budget period is always 12 months. Its characteristic is to link the budget period with the fiscal year and keep it at 65,438+02 months. Every past 65,438+0 months, the budget for the next few months will be adjusted and revised according to the new situation, and the budget for the next 65,438+0 months will be supplemented on the basis of the original budget, and gradually rolled back in the form of budget, and future business activities will be continuously planned.

The basic practice of rolling budget is to keep the budget period at 12 months, and add the budget of 1 month or 1 quarter immediately at the end of the period, so the budget keeps the date range of 1 2 months at any period.

Rolling budget can make managers at all levels think and plan the whole 12 months in the future, thus ensuring the stable and orderly operation and management of enterprises.

Rolling budget can overcome the blindness, invariance and discontinuity of traditional regular budget. In this sense, budgeting is no longer just a job at the end of each year, but a measure closely integrated with daily management.

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