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Priority-based budget |
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Definition of Priority-based budgetPriority-based budgetA budget that allocates funds in line with strategies.
Related Terms:Absolute priorityRule in bankruptcy proceedings whereby senior creditors are required to be paid in full Asset-based financingMethods of financing in which lenders and equity investors look principally to the BudgetA detailed schedule of financial activity, such as an advertising budget, a sales budget, or a capital budget. Budget deficitThe amount by which government spending exceeds government revenues. Capital budgetA firm's set of planned capital expenditures. Capital budgetingThe process of choosing the firm's long-term capital assets. Cash budgetA forecasted summary of a firm's expected cash inflows and cash outflows as well as its Activity-based budgetingA method of budgeting that develops budgets based on expected activities and cost drivers – see also activity-based costing. Activity-based costingA method of costing that uses cost pools to accumulate the cost of significant business activities and then assigns the costs from the cost pools to products or services based on cost drivers. BudgetA plan expressed in monetary terms covering a future period of time and based on a defined Budget cycleThe annual period over which budgets are prepared. Budgetary controlThe process of ensuring that actual financial results are in line with targets – see variance Flexible budgetA method of budgetary control that flexes, i.e. adjusts the original budget by applying standard Incremental budgetA budget that takes the previous year as a base and adds (or deducts) a percentage to arrive at Planning, programming and budgeting system (PPBS)A method of budgeting in which budgets are allocated to projects or programmes rather than to responsibility centres. 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. Value-based managementA variety of approaches that emphasize increasing shareholder value as the primary goal of every business. Zero-based budgetingA method of budgeting that ignores historical budgetary allocations and identifies the costs that are necessary to implement agreed strategies. activity based costing (ABC)A relatively new method advocated for the capital budgetingRefers generally to analysis procedures for ranking Capital BudgetingThe process of ranking and selecting investment alternatives and activity-based budgeting (ABB)planning approach applying activity drivers to estimate the levels and costs of activities necessary to provide the budgeted quantity and activity-based costing (ABC)a process using multiple cost drivers to predict and allocate costs to products and services; activity-based management (ABM)a discipline that focuses on the activities incurred during the production/performance process as the way to improve the value received attribute-based costing (ABC II)an extension of activitybased costing using cost-benefit analysis (based on increased customer utility) to choose the product attribute budgeta financial plan for the future based on a single level budgeted costa planned expenditure budgetingthe process of formalizing plans and committing budget manuala detailed set of documents that provides information budget slackan intentional underestimation of revenues budget variancethe difference between total actual overhead capital budgetmanagement’s plan for investments in longterm capital budgetinga process of evaluating an entity’s proposed continuous budgetinga process in which there is a rolling financial budgeta plan that aggregates monetary details flexible budgeta presentation of multiple budgets that imposed budgeta budget developed by top management master budgetthe comprehensive set of all budgetary schedules operating budgeta budget expressed in both units and dollars participatory budgeta budget that has been developed program budgetingan approach to budgeting that relates rolling budgetsee continuous budgeting zero-base budgetinga comprehensive budgeting process Activity-based costing (ABC)A cost allocation system that compiles costs and assigns BudgetA set of interlinked plans that quantitatively describe a company’s projected Capital budgetingThe series of steps one follows when justifying the decision to purchase capital budgetList of planned investment projects. capital budgeting decisionDecision as to which real assets the firm should acquire. Balanced-Budget MultiplierThe multiplier associated with a change in government spending financed by an equal change in taxes. Budget DeficitThe excess of government spending over tax receipts. Consolidated Omnibus Budget Reconciliation Act (COBRA)A federal Act Asset-Based FinancingLoans granted usually by a financial institution where the asset being financed constitutes the sole security given to the lender. Equity-based insuranceLife insurance or annuity product in which the cash value and benefit level fluctuate according to the performance of an equity portfolio. Related to : financial, finance, business, accounting, payroll, inventory, investment, money, inventory control, stock trading, financial advisor, tax advisor, credit. |