BAC 5010 RMIT University Performance Management Report

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yrzvaunau

Business Finance

BAC 5010

RMIT University

BAC

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Explanation & Answer:
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Explanation & Answer

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PERFORMANCE MANAGEMENT

Name of student
Name of professor
Institution affiliated
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Date

Introduction
The methods of Budgeting are a collection of tools and strategies that organizations and
people use to build an all-encompassing plan for their financial situations. A budget is an
ongoing process that involves a commitment from the individual or the organization to review
and adapt as necessary to sustain it while keeping in mind the organization's or the individual's
financial goals. The goal of developing and sticking to a budget is to keep track of the money
spent, gain assistance in making decisions regarding one's finances, and better prepare oneself
for unforeseen events.
Among the many approaches to Budgeting, the rolling budget, the zero-sum budget, the
straight-line budget, and the envelope budget are the most common. Tracking income and
expenses and revising the budget as necessary is what is involved in rolling Budgeting. It is an
efficient method for recording expenses that occur over a relatively short period, such as monthly
payments or quarterly taxes (Ouassini, 2018). The goal of a budget based on the zero-sum
principle is to reduce monthly spending to the point where the balance at the end of each month
is zero, with any surplus funds being placed in savings. Straight-Line Budgeting is a method
used to compute costs over a set period, with each month's expenses being spread evenly across
the course of the year. Firms frequently use this tool when preparing their budgets for day-to-day
operations and large purchases (Ouassini, 2018). Budgeting with envelopes is an effective way to
keep track of cash flow. The objective of this method is to have all expenditures conform to the
predetermined budgets established for various categories (Ouassini, 2018).To guarantee that
these budgeting strategies will be effective, each one should be adapted to the specific
requirements of the individual or company. These strategies can help individuals and

organizations save money over time, improve their financial management, and get closer to
achieving their financial goals, provided proper planning and tracking are employed.
What is Impresario's current budgeting method?
Incremental Budgeting is the type of budgeting process which involves adding more
resources or conducting more activities as income increases. It emphasizes incremental costs and
benefits instead of performing a full-scale review of existing budgets every year. This process
allows managers to assess the current financial situation, consider past successes and failures,
and plan for future growth. Many organizations use incremental Budgeting to optimize their
spending and maximize their return on investment (Ouassini, 2018). It is designed to identify
areas where the organization can b...


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