![]() A zero-based budgeting or activity-based budgeting technique may come in handy with program-based budgeting. Each activity must be allocated resources accordingly. Program Execution and Resource Allocation: A flexible and modernized method for budgeting will be to allocate the resource on an on-going basis.The organization may incur several overlapping expenses and activities at the same time, but it must only include the program-related costs. Estimating Activity Costs: All costs must be estimated for the activities and resources related to the program only.The detailed plan should include the program objectives, tasks, activities, and milestones for the program. Identification and Planning: as with any budgetary method, the first step should be to clearly define and identify the budget activities.The focus of the program based budgeting should be to take into account only program relevant activities and resources. Organizations can take a formal step-by-step approach for creating program budgets. Thus, its evaluation will heavily depend on clearly defining the program objectives. A community project or event would set the effective achievement of services offered through the program. A commercial project would set the target profit and revenue as a target. However, the prime difference in the program based budgeting will arise from the objectives of the program. The broader definition of this budgeting remains the same. In practice, the method differs from traditional budgeting with a focus on achieving the end results of the program efficiently rather than cost reductions. This type of budgeting by definition is the identification of expenses and revenues linked with the program or project. ![]() ![]() The program nature can further define the budgeting goals in financial or non-financial terms such as achieving profits or objectives. Under this method, all expenses and revenue streams should be linked only with the defined project or program. The event can be a commercial project or non-commercial event. Program budgeting is a method of allocating budgets for a specific program or event. One of the different types of budgeting is program budgeting. Modern budgeting requirements call for activity-based resource allocations. The traditional line-item budgeting focuses on cost items and reducing the cost per item basis. The simplest of the budgeting definition is to allocate resources and compare the results against the allocations. Budgeting can be defined in several ways on a financial and non-financial basis.
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