Investor Glossary-activity based budgetingInvestor Glossary-activity based budgetingInvestor Glossary-activity based budgetingInvestor Glossary-activity based budgetingInsightful stock market charts - Click here
investor
Categories    # A B C D E F G H I J K L M N O P Q R S T U V W X Y Z

Activity Based Budgeting

The HTML to link to this page
 

Activity based budgeting is a budgeting method that evaluates business processes in terms of the results they achieve. In activity based budgeting, companies analyze the full range of activities they perform, assess the impact of those activities on cost and revenue, and adjust their spending decisions to favor those that are the most beneficial. Activity based budgeting differs from cost based budgeting in that the latter only tries to adjust a prior period's budget for revenue growth and inflation. Many companies now prefer activity based budgeting because it streamlines operations, aligns spending with strategic goals, and thereby improves efficiency. For instance, managers using activity based budgeting can determine whether or not different areas of their company are duplicating another activity, and consolidate or reassign that function if required. Activity based budgeting might also help a company identify which of its products or services are delivering value and which are not.



Rate this Activity Based Budgeting definition...

Learn about investing with the Investor Glossary Term of the Day


Click here for insightful stock market charts. Where is the market headed? The answer may surprise you. Find out
with the exclusive & Barron's recommended charts of Chart of the Day.


Popular Terms: implied volatility, EBITDA, minority interest, VIX, class C shares, 1035 exchange, real GDP, 401a, labor relations, per diem, required rate of return, reverse mortgage, stock market close, inflation, LIBOR, margin rate, 144a, debt service coverage, diluted share, in escrow, dividends payable, retained earnings, option premium, Key Rate Duration, quality assurance, FTSE, liquidity ratio, irrevocable trust, command economy, deferred revenue, wholly-owned subsidiary, cancelled check, covered put, average price per share, APR, Zero Cost Collar, 1031 exchange, current ratio, FICO score, balance sheet, annual return, stock split, deferred tax, ex-dividend date, phantom income, ex-dividend, open position, risk management, limit order


Accounting | Banking | Bonds | Brokers | Economy | Futures | Mutual Funds | Options | Real Estate | Retirement | Stocks | Taxes | Technical Analysis
Home | Term of the Day | Suggest a Term | Chart of the Day | Dogs of the Dow
©2004-2016 Investor Glossary - All rights reserved - Terms of Use