Budgeting models example
Budgeting models serve different strategic purposes, and understanding their strengths and weaknesses is critical for effective financial planning. This lesson compares incremental, activity-based, and zero-based budgeting techniques, examining how each approach influences fiscal decision-making and organisational priorities—including the risk that zero-based budgeting may inadvertently encourage short-term thinking at the expense of long-term investments.
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In this lesson
- 0:00 Introduction to Budget Models Example
- 2:18 Lesson Recap and Summary
About this lesson
Dive into the intricacies of budgeting models and uncover why zero-based budgeting might inadvertently promote short-termism over long-term benefits. This video provides a clear example to differentiate between various budgeting techniques, including incremental, activity-based, and traditional budgeting, highlighting their impacts on fiscal planning and decision-making. Gain valuable insights into the purposes of budgets, the planning cycle, and the strategic advantages and disadvantages of implementing different budgeting models. Perfect for finance professionals and managers, this guide offers the tools to choose the most effective budgeting technique for your organisation's needs.
Duration: 3m
- Incremental budgeting
- Activity-based budgeting
- Zero-based budgeting
- Traditional budgeting approaches
- Budget purposes and planning cycles
- Strategic advantages and disadvantages of budgeting models
Transcript
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