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A method where all expenses must be justified for each new period. Budgets are built from a 'zero base' and each function is analyzed for its needs and costs.

Takes last year's actual figures and adds or subtracts a percentage to obtain the current year's budget. It is easy to implement but may perpetuate previous spending inefficiencies.

Focuses on the costs of activities necessary to produce and sell products and services. It's a detailed approach that can lead to better allocation of resources to various activities.

Allocates funds based on the value propositions of different segments, using a value-for-money approach. Resources are directed towards areas most likely to generate value.

The budget is created by the top management and then cascaded down to lower-level departments who are tasked with implementing it. Ensures alignment with strategic objectives but can be restrictive.

Lower-level employees submit budget requests which are aggregated to form the overall company budget. Encourages employee engagement but can be time-consuming.

Revises budget policies to accommodate actual activity levels. It adjusts for variations in activity, providing a more realistic comparison of budgeted to actual results.

Assesses the profitability and financial implication of investments in capital assets. Involves projecting future cash flows and determining their present value.

Links the funds allocated to measurable outcomes or programs. It emphasizes the relation between the input of resources and the output of services for each unit of an organization.

Allocates funds based on priority areas and objectives of the organization. It helps in focusing resources to the most critical areas that support organizational goals.

Divides cash into envelopes for various categories of expenses, and spend according to these categories only. This can prevent overspending and encourage disciplined financial management.

Entirely focuses on outputs or outcomes, funding what delivers the results the organization wants. It encourages effectiveness by orienting spending around achieving specific goals.

Involves employees at all levels in the budgeting process, leading to a collaborative effort. This can increase motivation and information sharing but may also result in budget inflation.

A balance-oriented approach where expenses in one category must be offset by savings in another. It promotes cost-consciousness and maintaining equilibrium in budgets.