Traditional Culture Encyclopedia - Traditional stories - What are the budget methods?
What are the budget methods?
1.? fixed budget
Fixed budget, also known as static budget, is based on a normal and achievable business level during the budget period.
2.? flexible budget
On the basis of habitual cost (expense) classification, according to the interdependence among quantity, cost and profit, and considering the possible changes of business volume during the planning period, flexible budget has formulated a set of expense budget that can adapt to various business volumes.
3.? Incremental budget
This budget is based on the previous expenses, adjusted according to the expected operating conditions and management needs.
4.? zero-base budgeting
Zero-based budgeting simply means that everything starts from scratch, regardless of the previous expenses and their amounts. Proceed from the actual needs, consider whether the contents and expenditure standards of various expenses in the budget period are reasonable one by one, and prepare the expense budget on the basis of comprehensive balance.
5.? Regular budget and rolling budget
The regular budget takes a constant accounting period as the budget period. In most cases, this period is one year, corresponding to the accounting period.
Rolling budget refers to separating the budget period from the accounting period when preparing the budget. With the implementation of the budget, the budget is continuously supplemented and rolled back one by one, so that the budget period always keeps a fixed length (generally 12 months).
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