Budgeting

The video tutorial covers the basics of budgeting, including its purpose and various approaches such as incremental, activity-based, value proposition, and zero-based budgeting. It also discusses the levels of involvement in the budgeting process, including imposed, negotiated, and participative budgets.

What are the two main components of budgeting in a business context?

• Assets and liabilities

• Past activities and future predictions

• Anticipated activities and required resources

• Revenue and expenses

Which budgeting approach involves using historical data and adjusting for inflation?

• Value-proposition budgeting

• Incremental budgeting

• Activity-based budgeting

• Zero-based budgeting

In which budgeting approach do higher-level managers often start from scratch based on identified activities?

• Incremental budgeting

• Activity-based budgeting

• Value-proposition budgeting

• Zero-based budgeting

What is the main focus of value-proposition budgeting?

• Historical cost analysis

• Top-down management decisions

• Return on investment for each activity

• Randomized budget increases

Which type of budget involves collective participation from both top management and operational staff?

• Incremental budget

• Imposed budget

• Negotiated budget

• Participative budget