Budgeting Model

Budgeting Model

Any quantitative system used to help prepare a budget. A budgeting model helps a company ready itself in case revenues and/or expenditures are different from estimations. That is, it assists in determining what a company ought to do if it performs particularly well or poorly in a given year. Most budgeting models involve calculations done on a computer.
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References in periodicals archive ?
Since he arrived at ASU-Newport, Adair said, he has developed a comprehensive master plan and a new zero-based budgeting model that has led to significant cost savings, including $500,000 the first year.
A common question often posed, is, "is IRIS a performance-based budgeting model?" The answer is, yes; IRIS is a performance-based budget that aims to improve the efficiency and effectiveness of public expenditure by linking the value, a robust budgetary system is required.
The desirable outcomes are at risk if too many other new civic initiatives compete with the introduction of the participatory budgeting process and if implementation of the process is not adequately supported by training and technical assistance for the city staff, according to the paper, which is billed as the first experimental evaluation of the participatory budgeting model. Combining reforms such as administrative, fiscal, and political decentralization together with participatory budgeting appears to diminish the potential the latter can have when implemented in already-mature decentralized local governments.
Contrast this to the performance-based budgeting model, which ties funding to student outcomes.
Collaborative Budgeting Model (bottom-up budgeting with a structured workflow).
It is our aim to offer a practical survival guide, under the rubric of "budgeting with a view to sustainability." We present the Sustainability Budgeting Model (SBM) in the context of a department of nursing (DN) of a major hospital.
Unlike the traditional budgeting model, pegged to staffing needs for a given school's enrollment and teacher-student ratio, a weighted student formula tailors a specific funding level to each child--with extra "weighted" dollars for individual special needs.
A Marti Bailey points out, "My take on zero-based staffing is that it is a natural extension of zero-based budgeting (ZBB), a budgeting model developed in the 1970s.
For those public managers who haven't the time to digest yet another "business book," there is a superb overview article by the authors in the Winter 2003 issue of the California Management Review (CMR) entitled "New Ways of Setting Rewards: The Beyond Budgeting Model." Whether you read the long version or the short, Hope & Fraser blame budgeting.
The nuances of operating a company, much like the nuances of reporting, make it difficult for the traditional budgeting model to be effective.
A 1998 benchmarking study showed the costs of operating with the budgeting model: the average company invests more than 25,000 person days per billion dollars of revenue in the planning and performance measurement processes; the average time taken to develop a financial plan is four and a half months; and companies need an average of 21 days to complete a forecast[6].
33), Volvo Cars, IKEA, SKF, Borealis, Fokus Bank, and Boots have all abandoned the budgeting model in one form or another in recent years.