Budgeting Models: A Comparative Study

Budgeting models are guidelines that help an organization guide its resources and allocate them appropriately to manage the finances of an organization. Types of budgeting models include Incremental, Zero-Based, Flexible, Activity-Based, Value-Proposition, Rolling, Performance-Based, Top-Down, and Bottom-Up. Each of these has pros and cons; some are best suited for stable organizations, while others are best suited for flexible, performance-based, or activity-driven organizations. The right model depends on the goals, complexity, and operational needs of the organization.