What do you mean by budget? Explain various kind of budgeting metho

Question

13 Jul 2023

Answer :

Word Count : 579

Budget refers to a financial plan that outlines an organization's projected income and expenses over a specific period. It serves as a tool for planning, controlling, and evaluating an entity's financial activities. Budgeting involves the process of estimating, allocating, and managing financial resources to achieve predetermined goals and objectives.

Various kinds of budgeting methods are employed by organizations to suit their specific needs and circumstances. Here are some commonly used budgeting methods:

1. Incremental Budgeting:
Incremental budgeting is a traditional approach where the budget for the upcoming period is based on the previous period's budget, with incremental adjustments. The adjustments typically account for factors like inflation, salary increases, and changes in demand. While this _______ ___ _____ ___ __________ ____ _______ ________ _________ ________.
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