AJAX progress indicator
  • bottom-up participative budget
    A budget approach driven by the direct participation of lower-level employees
  • budget committee
    A group of senior managers from each business unit charged with leading the budget preparation and review process
  • budget slack
    The influence of behavior to "pad" a budget via misstating expected revenues and/or expenses; to create more favorable budget vs. actual performance appraisals
  • cash budget
    An essential budget component detailing planned cash receipts, disbursements, and financing actions
  • continuous budget
    A budget that is constantly updated; as one month/quarter is completed another is added to the set the projections
  • direct labor budget
    A budget that details expected direct labor needs, along with the related costs of labor
  • direct material purchases budget
    A budget that details expected direct material purchases, along with the related cash payments
  • encumbrance
    A budgetary restriction occurring in advance of a related expenditure
  • factory overhead budget
    A budget that details the anticipated factory overhead, including calculations related to the allocation of such amounts
  • flexible budget
    A budget that covers a range of potential outcomes by relating expense levels to the potential revenues
  • incremental budgeting
    A budgeting approach where the prior year experience sets a base line for a new budget; changes are made based on new information but the base need not be rejustified in detail
  • master budget
    Also known as the comprehensive budget; an integrated set of articulated budgets relating to numerous operational subcomponents (labor, material, overhead, SG&A, etc.)
  • pro forma financial statements
    "As if" budgeted financial statements
  • production budget
    A budget that details planned levels of production; takes into account sales and inventory build/decline
  • sales budget
    A budget that details anticipated sales levels
  • SG&A budget
    A budget that details anticipated selling, general, and administrative costs
  • static budget
    A budget that does not anticipate alternative outcomes; estimated sales and expenses are fixed and establish the relevant benchmarks
  • top-down mandated budget
    A budget approach where upper level management establishes parameters under which the budget is to be prepared
  • zero-based budgeting
    A budget approach where each expenditure item must be justified for each new budget period