0
Imagine a department that delivers 2 services - street cleaning and solid waste management.
Line-item budget would look like:
Director - 1000$
Cleaners - 5000$
Trucks - 3000$
Workshop - 6000$
Electricity - 500$
Total: 15500$
Programme budget will have all the costs apportioned:
Street cleaning (for 1 month, 2km of streets cleaned every day)
Director (50%) - 500$
Cleaners (100%) - 5000$
Electricity (20%) - 100$
Total street cleaning: 5600$
Solid waste management (for 1 month, 500kg solid waste processed every day)
Director (50%) - 500$
Trucks (100%) - 3000$
Workshop (100%) - 6000$
Electricity (80%) - 400$
Total solid waste management: 9900$
Line-item eventually is still retained by most public entities, because it is the first step in identifying costs, whether governments make a move to programme budget - depends on their needs.
Programme budget helps achieve performance evaluation, i.e. how much street cleaning costs, how much does it cost to clean 1 km of street, how is the current dpt performing against other similar units, and relate outputs to costs.
Line-item is simpler, helps in reviewing aggregate costs (i.e. how much did the electricity cost in a particular month) and only looks at inputs, does not relate outcomes to inputs and does not have efficiency and effectiveness as priority.
What else can I help you with?
What is the difference between activity based budgeting and traditional budgeting?
The activity based budgeting will give a percentage of the budget to the sections that are the most used. Traditional just splits it all up evenly.
What are the Weaknesses in capital budgeting?
1. poor alignment between strategy and capital budgeting 2.deficiencies in analytical techniques 3.no linkage between compensation and financial measure 4.reverse financial engineering 5.weak integration between capital budgeting and expense budgeting 6.inadequate post-audit. answers given by Shailesh sharma.
What are the difference between cash budgeting and capital budgeting?
capital expenditure budget is a part of cash budget.cash budget involves managerial activities while capital expenditure budget involves day to day activities may be for long range or short range
What is the difference between a budget system and a budget cycle?
A budget system refers to the overall framework and processes an organization uses to plan, allocate, and monitor its financial resources. It encompasses the tools, methodologies, and policies for budgeting. In contrast, a budget cycle is the specific timeframe during which budgeting activities occur, typically including phases such as preparation, approval, execution, and evaluation. Essentially, the budget system is the structure, while the budget cycle is the timeline of budgeting activities.
What is the difference between budgeting and budgetary control?
Budgeting is the process of creating a financial plan that outlines an organization's expected revenues and expenditures over a specific period, typically a year. Budgetary control, on the other hand, involves the ongoing monitoring and management of actual financial performance against the budgeted figures. While budgeting sets the financial targets, budgetary control ensures that the organization adheres to those targets and makes necessary adjustments to stay on track. Together, they help in effective financial management and decision-making.
What is the difference between activity based budgeting and traditional budgeting?
The activity based budgeting will give a percentage of the budget to the sections that are the most used. Traditional just splits it all up evenly.
What the difference between short-term intermediate and long-term budgeting goals?
Short term... budgeting from one pay-day to the next. Medium term... budgeting for a larger expense (such as a holiday) Long term... budgeting for a very big expense (ie a car or house)
Who are the differences and similarities between zero-based budgeting and activity-based budgeting?
Suggest you look at the CIMA website for excellent resource material on budgeting www.cimaglobal.com go to resources and search from there
What are the Weaknesses in capital budgeting?
1. poor alignment between strategy and capital budgeting 2.deficiencies in analytical techniques 3.no linkage between compensation and financial measure 4.reverse financial engineering 5.weak integration between capital budgeting and expense budgeting 6.inadequate post-audit. answers given by Shailesh sharma.
What is the difference of public finance from private finance?
the different between public and private wants is on the financial means availlable and on the budgeting procedure
Why is there a need of effective correlation between budgeting and planning?
There is a need for correlating budgeting with planning because without a budget the plan could not be put into reality.
What are the difference between cash budgeting and capital budgeting?
capital expenditure budget is a part of cash budget.cash budget involves managerial activities while capital expenditure budget involves day to day activities may be for long range or short range
What are some benefits of budgeting?
By budgeting, you can have a semblance between your income and projected expenditure during a specified period.This is of paramount importance than sailing a rudderless boat in the sea.
What is the difference between capital budgeting decisions and capital structure decisions?
Capital budgeting is related with the investments decisions which has to be made in long-term fixed assets and working capital management. Capital structure is related with the financing decisions regarding the debt and equity combinations,in which proportion debt and equity has to be maintained.
What is difference between the capital budgeting decision and capital structure decision?
Capital budgeting is related with the investments decisions which has to be made in long-term fixed assets and working capital management. Capital structure is related with the financing decisions regarding the debt and equity combinations,in which proportion debt and equity has to be maintained.
How taxation and budgeting narrow the gaps between rich and poor?
Taxation and budgeting have nothing to do with any gaps between rich and poor. Anyone who tells you they do is simply a propagandist trying to convince you to give the government more power and control.
What is the difference between a budget system and a budget cycle?
A budget system refers to the overall framework and processes an organization uses to plan, allocate, and monitor its financial resources. It encompasses the tools, methodologies, and policies for budgeting. In contrast, a budget cycle is the specific timeframe during which budgeting activities occur, typically including phases such as preparation, approval, execution, and evaluation. Essentially, the budget system is the structure, while the budget cycle is the timeline of budgeting activities.
