business






 

Question by  Megan (35)

What is the purpose provided by line item performance and program budgets?

I am studying accounting and do not understand why an organization would use line item performance budgets.

 
+5

Answer by  mb (5482)

Line item performance budgets allow a company to catogorize its different expenses. Sometimes this is done for tax reasons or to "trim the fat". Its easier to find employees stealing too.

 
+4

Answer by  makingmoney (110)

It allows for easier viewing and clarification of each item; thus it enables a more clear measurement of programs success or failure. Line item allows for specific evaluation cost and correct monetary allocation such as utility increase of 2% but decrease in water by 1%. Requires managers to answer for differences during budget meetings.

 
+3

Answer by  sss (3)

program provided budget, is provided for collecting funds to finance the most various projects what are provided to improvement of society

 
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