budget committeeA group of senior managers from each business unit charged with leading the budget preparation and review process
budget slackThe influence of behavior to "pad" a budget via misstating expected revenues and/or expenses; to create more favorable budget vs. actual performance appraisals
encumbranceA budgetary restriction occurring in advance of a related expenditure
factory overhead budgetA budget that details the anticipated factory overhead, including calculations related to the allocation of such amounts
flexible budgetA budget that covers a range of potential outcomes by relating expense levels to the potential revenues
incremental budgetingA budgeting approach where the prior year experience sets a base line for a new budget; changes are made based on new information but the base need not be rejustified in detail
master budgetAlso known as the comprehensive budget; an integrated set of articulated budgets relating to numerous operational subcomponents (labor, material, overhead, SG&A, etc.)
A budget that details planned levels of production; takes into account sales and inventory build/decline
sales budgetA budget that details anticipated sales levels
SG&A budgetA budget that details anticipated selling, general, and administrative costs
static budgetA budget that does not anticipate alternative outcomes; estimated sales and expenses are fixed and establish the relevant benchmarks
top-down mandated budgetA budget approach where upper level management establishes parameters under which the budget is to be prepared
zero-based budgetingA budget approach where each expenditure item must be justified for each new budget period
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