The disadvantage of this budget format is that it makes no effort to state how specific functions will be carried out--just that they will be performed. This disadvantage makes it somewhat difficult to assess performance budgets in some instances, although they are easier to evaluate than are objects of expenditure budgets.
From the manager's perspective, performance budgets provide him or her with an opportunity to justify broad objectives, as opposed to the need to justify each minute expenditure. Further, the performance budget format permits a manager to shield from public view specific program costs.
Program budgets are, as are objects of expenditure and performance budgets, incremental in character. 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 (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 actually means, however, is th...
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