绩效评估控制系统（PPT 19页）.ppt

* The incremental budget uses the last period’s budget as a reference point; then, adjustments are made to individual budgetary items. There are several disadvantages: they hide inefficiencies and waste, encourage continual increases, and hinder change. The zero-based budget starts from scratch, so each item must be justified in terms against a cost-benefit ratio. There are several disadvantages: paperwork and preparation time are increased, managers can inflate the benefits of programs they want funded, and long-term and intermediate planning efforts can be thwarted. Top-down budgets are initiated and controlled by top management, then implemented by lower-level managers. First, this method assumes that top management has comprehensive data on all organizational activities. Second, because lower-level managers have no input, top-down budgets do not build support and commitment. Bottom-up budgets are prepared by those who must implement them and sent to top management for approval. These budgets have advantages. First, they are prepared by managers who know their needs and are unlikely to omit important budgetary items. Second, managers are more likely to support the bottom-up budgets that they helped to prepare. Since it allocates production costs according to activities performed and services employed, activity-based budgeting focuses on the processes integral to an organization’s operations rather than the costs of individual budgetary items. As a component of TQM, this method helps separate the activities that add value to customers from those that do not. * The following steps assume a bottom-up approach. 1. Review the organization’s overall strategy and goals to focus on the goals of the organization and for your department. 2. Determine your unit’s goals and the means to attain them. What activities will be performed, and what resources will be needed in order to reach the goals of your department and the organization? 3. Gather cost information to