In ____, the current budget is used as a baseline, and adjustments are made based on the previous year's budget, typically by adding or subtracting a certain percentage to account for inflation or other changes ____ requires that all expenses be justified for each new period, rather than simply adjusting previous budgets. This method helps eliminate unnecessary costs by thoroughly assessing each line item In ____ based budgeting, resources are allocated based on the relative importance of each department or project, ensuring that the most ____ areas receive the highest funding Activity based budgeting focuses on the costs of specific ____ required to produce goods or services, rather than just overall departmental budgets, helping organisations identify cost drivers more accurately. A ____ is continuously updated by adding a new period (e.g., month or quarter) as the current period ends, ensuring that the budget always reflects a full year’s worth of projections Contingency budgeting sets aside a certain amount of funds to cover ____ costs or emergencies that may arise during the budgeting period, ensuring the organisation can remain financially stable despite ____ challenges. In ____ budgeting, the budget is created by gathering input from individual departments or lower-level managers who understand the detailed needs of their areas, and then the aggregate figures are reviewed and approved by senior management With ____ budgeting, senior management sets the overall budget and allocates funds to various departments or projects based on strategic priorities, often without much input from lower-level managers

Budgeting

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