Sometimes budget amounts are arrived at by copying the previous year’s amounts and maybe adjusting them by some percentage, under the assumption that if the money was spent last year, it will be needed again this year. If the leadership of an organization instead wants to see a justification of every budget expenditure, then which approach would be best?
Bottom-up budgeting
Zero-based budgeting
Top-down budgeting
To know whether the company can meet payroll at the end of the week, managers look at? (the capital budget, the expense budget, the revenue budget, the cash budget), which documents daily or weekly cash inflow and outflow.