Budget Formats The purpose of this paper is to cr

A budget, as a noun, is a detailed financial plan for the organization, which (1) describes financial resources expected to be available to the organization during the period covered by the budget, (2) identifies anticipated sources of the financial resources, and (3) provides a plan for the allocation and use of the identified financial resources (Garrison, 1985, p. 274). Budgeting, as a verb, is the process by which a budget is created (p. 275).

There exist a variety of budget types, and a variety of processes by which budgets may be created. This research is

concerned with those budget types, referred to as formats, which are most often used by public sector and non-profit organizations.

The traditional budgeting process used by non-profit and public sector organizations is incremental in character (Lynden, & Lindenberg, 1983, pp. 61-64). Incremental in a budgeting process means that future budgets are based, in part, on past budgets. One of the three general types of incremental budgets used by non-profit and public sector organizations is the objects of expenditure budget (the other two incremental formats of interest are program budgets, and performan

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racter. A program budget is actually an extension of the performance budget format (Mikesell, 1986, p. 146). Rather than budgeting functions (objectives and missions, as is done in the performance budget format, the program budget format places specific funding levels on specific programs which are to be carried out by an organization. From the manager's perspective, the program budget format may be either a boon or a bane. When specific programs are popular with the public, the format is a boon. On the other hand, when specific programs do not enjoy wide public support, the program budget format may be a bane. THE ZERO-BASED BUDGET The zero-based budget (ZBB) format is not an incremental type of budget. The ZBB concept is not universally loved. Robert Anthony described the process as a fraud (Lewis, & Walker, 1984, p. 163). According to the American Management Association (AMA), the concept generates a "wide variety of reactions ranging from excitement to fear and . . . hostility" (Austin, & Cheek, 1984, p. 2). A part of the reason for the varied reactions appears to be that the ZBB name causes many people to think that the budgeting concept means a reduction of expenditures from current levels. What the name actua
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Austin Cheek, Lynden Lindenberg, BUDGETS Program, BUDGETING PROCESS, Additionally ZBB, Lastly ZBB, , PERFORMANCE BUDGETS, budget format, ZERO-BASED BUDGET, Association AMA, budgeting process, public sector, objects expenditure, decision package, objects expenditure budget, performance budgets, cheek 1984, austin cheek, performance budget, program budget, austin cheek 1984, public sector organizations, program budget format, lynden lindenberg 1983,
Approximate Word count = 1612
Approximate Pages = 6 (250 words per page)