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2.1 Continuous (rolling) budgeting. A time frame is maintained (i.e., 12 months, 6 months, etc.) and
when a segment in a budgeted time frame expires and is dropped, a new segment is to be added to
maintain the same time frame.
2.2 Flexible budgeting. Cost and expenses are segregated to fixed and variable components giving way
to the determination of estimated costs based on actual capacity.
2.3 Static budgeting. Costs and expenses are not segregated to fixed and variable components and the
budgeted costs, without adjustments to actual capacity, serve as the basis in evaluating actual
performance.
2.4 Imposed budgeting. Budgets are prepared by top management with little or no inputs from
operating personnel.
2.5 Participatory budgeting. Budgets are developed through joint decision making by top management
and operating personnel.
2.6 Program budgeting. An approach that relates resource inputs to service outputs; it generally starts
by defining the objectives by outputs results than in terms of quantity of input activities.
2.7 Zero-based budgeting. Activities to be incurred are to be prioritized based on its order of relevance
in line with a defined goal in the coming period without regard to past experiences or present condition.
2.8 Life-cycle budgeting. Costing is done over the entire life span of a product stating from its period of
conception (eg., research and development), to infancy (eg., product introduction), growth (eg.,
acceptance), expansion, up to maturity (or decline), design, commercial production, marketing,
channels of distribution, customer services, and post-sales services of a product to determine the most
strategic price for market dominance, saturation or influence.
3.0 The Master Budget
3.1 The master budget is a consolidation of financial estimates based on budgeted level of sales. It is
composed of operating budgets, financial budgets, and capital budgets.