Describe the difference between a line item budget and a performance budget

Expert Solution

A performance budget almost always has numerical targets or goals attached to it. It seeks to measure/quantify the output achieved for the inputs used. Such budgets are mostly used by government bodies, public sector entities whose primary aim is social welfare & not-for-profit organizations. These budgets essentially try to measure benefits achieved vis-a-vis the resources used.

For example, rate of reduction in crime rate vs. increase in law enforcement personnel or reduction in mortality rate vs. increase in government healthcare spend.

A line item budget on the other hand, budgets or forecasts expenses department/cost centre/line of business wise. Such budgets are helpful in understanding which functions in a business incur the maximum costs & the specific areas that contribute to those costs.

For example, are the costs incurred by the procurement or manufacturing or human resources or finance function the highest?

jeff jeffy answered 1 year ago

Describe the difference between a point defect and a line defect and the effects on the...

Describe the difference between a point defect and a line defect and the effects on the crystal structure. Give an example and sketch of each of the two types.

difference between performance assesment and performance appraisal

describe the characteristics of performance-driven team. Describe the difference between intrinsic and extrinsic motivation and explain...

describe the characteristics of performance-driven team. Describe the difference between intrinsic and extrinsic motivation and explain why it is important in unnderstanding the types of motivation when it comes to team performance. please include citations and references used.

(1) Explain the similarities and differences between a traditional budget, a program budget, and a performance...

(1) Explain the similarities and differences between a traditional budget, a program budget, and a performance budget. Be specific. (2) Explain the focus and purpose of each budget.

Explain the difference between a regression line and a scatterplot.

What is the difference between the federal budget deficit and the national debt? a. The budget...

What is the difference between the federal budget deficit and the national debt? a. The budget deficit is the amount by which expenditures exceed revenues in a particular year, while the national debt is the cumulative effect of all past budget deficits and surpluses. b. The national debt includes all outstanding bonds, while the budget deficit excludes bonds held by government agencies. c. The budget deficit is the cumulative effect of all prior national debts. d. There is no difference...

a) Explain the difference between the capital budget and operating budget for an organization, and provide...

a) Explain the difference between the capital budget and operating budget for an organization, and provide an example of at least one expense that would likely be included in each of these two separate budgets. b) Explain the difference between the incremental budgeting approach and the zero-based budgeting approach, and include a discussion of the relative advantages and disadvantages of each of these two methodologies.

Governmental budgets may be organized in line-item, program, and performance formats. What are the differences among...

Governmental budgets may be organized in line-item, program, and performance formats. What are the differences among these three approaches? Make an argument that builds a case for hybrid presentations that includes all three elements. Please be detailed in the answers.

Differences between performance-enhanced budgeting and a "traditional" budget process?

Describe the difference between inpatient and outpatient facilities. Describe the difference between public, voluntary, and private...

Describe the difference between inpatient and outpatient facilities. Describe the difference between public, voluntary, and private hospitals. Find the hospital closest to your home, and define what type of hospital it is. Minimum 400 words please Intext citations and reference please Ref: An Introduction to Community Health. 8th ed. McKenzie, J.F., Pinger, R.P., Kotecki, J.E. Jones & Bartlett Learning. 2015 ISBN: 978-1284036596

Question