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Financial Terms | |
budgeting |
Information about financial, finance, business, accounting, payroll, inventory, investment, money, inventory control, stock trading, financial advisor, tax advisor, credit.
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Definition of budgetingbudgetingthe process of formalizing plans and committing
Related Terms:Activity-based budgetingA method of budgeting that develops budgets based on expected activities and cost drivers – see also activity-based costing. activity-based budgeting (ABB)planning approach applying activity drivers to estimate the levels and costs of activities necessary to provide the budgeted quantity and Capital budgetingThe process of choosing the firm's long-term capital assets. capital budgetingRefers generally to analysis procedures for ranking Capital BudgetingThe process of ranking and selecting investment alternatives and capital budgetinga process of evaluating an entity’s proposed Capital budgetingThe series of steps one follows when justifying the decision to purchase ![]() capital budgeting decisionDecision as to which real assets the firm should acquire. continuous budgetinga process in which there is a rolling Planning, programming and budgeting system (PPBS)A method of budgeting in which budgets are allocated to projects or programmes rather than to responsibility centres. program budgetingan approach to budgeting that relates zero-base budgetinga comprehensive budgeting process Zero-based budgetingA method of budgeting that ignores historical budgetary allocations and identifies the costs that are necessary to implement agreed strategies. Aggregate planningA budgeting process using summary-level information to budget slackan intentional underestimation of revenues cash flowthe receipt or disbursement of cash; when related ![]() controllerOfficer responsible for budgeting, accounting, and auditing. Cost of capitalThe required return for a capital budgeting project. Cost of capitalThe blended cost of a company’s currently outstanding debt instruments Cost of CapitalThe discount rate that should be used in the capital budgeting process. DependentAcceptance of a capital budgeting project contingent on the acceptance of another project. Direct estimate methodA method of cash budgeting based on detailed estimates of cash receipts and cash Hurdle rateThe required return in capital budgeting. Internal rate of returnThe rate of return at which the present value of a series of future Payback methodA capital budgeting analysis method that calculates the amount of Post-auditA set of procedures for evaluating a capital budgeting decision after the fact. ProfilingA method of budgeting that takes into account seasonal fluctuations and estimates of when revenues will be earned and costs will be incurred over each month in the budget period. revenue centera responsibility center for which a manager is accountable only for the generation of revenues and has no control over setting selling prices, or budgeting or incurring costs rolling budgetsee continuous budgeting Rolling budgetsA method of budgeting in which as each month passes, an additional budget month is added such that there is always a 12-month budget. Salvage ValueThe value of a capital asset at end of a specified period. It is the current market price of an asset being considered for replacement in capital budgeting. Statement-of-cash-flows methodA method of cash budgeting that is organized along the lines of the statement of cash flows. Related to : financial, finance, business, accounting, payroll, inventory, investment, money, inventory control, stock trading, financial advisor, tax advisor, credit. |