how does a company select the approach used in the budgeting process?

Wednesday, February 24, 2010 12:04
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Posted in category Budgeting

various budget approaches exist: top down, bottom up, zero based, activity based, incremental… I’m curious what makes an organisation choose a specific approach. I’ve searched the web and some scientific databases in my local library but cannot find a paper/article/study explaining the choice of a company. Anh help?

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One Response to “how does a company select the approach used in the budgeting process?”

  1. jwishz says:

    February 24th, 2010 at 12:04 pm

    Probably not going to find it. You would unfortunately have to interview CFO’s & CAO’s to get their take on why they have chosen the approach the did.I have always been a fan of zero-based. They all have their advantages and disadvantages. Sorry, can’t be more help

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