Framework
Types of budget
The question it answers
When drawing up the annual plan, which type of budget (incremental, zero-based, flexible…) should a CFO use for each cost-control purpose?
- Origin
- Pyhrr, 1970
- Diagram type
- Comparison table
- Level of analysis
- Firm
- Topics
- Corporate finance
Diagram
Types of budget
| Criterion | Operating | Capital | Cash | Flexible |
|---|---|---|---|---|
| Covers | Running revenue and costs | Long-term assets | Cash in and out | Costs at actual activity |
| Main use | Control | Funding growth | Avoiding shortages | Fair variance analysis |
Sources
References
Listed A–Z by author surname, Harvard style. A source with a DOI links to https://doi.org/…; one without links to its page or says plainly that it has no DOI.
- Pyhrr, P.A. (1970) ‘Zero-base budgeting’, Harvard Business Review, 48(6), pp. 111–121.No DOISource page