What are the different methods of budget preparation?

To determine the budget you need to:

1st: obtaining the project estimation by any of the below methods:

-          analogous estimation

-          parametric estimation

-          bottom up estimation (best method)

With using the cost aggregation for the all the items / activities components.

2nd: adding the contingency reserve to the above project estimation to obtain the cost baseline.

3rd: adding the management reserve to the above cost baseline to finally obtain the Cost Budget.

1. Zero Based Budgeting 2. Top down Budgeting3. Bottom up Budgeting and4. Activity based Budgeting

Fixed Budget

Veriable budget

Zero base budget

the two most common methods

Operating budget :cach budget

and may also include these mothods

labor budget - sales budget- Production budget

Expense budget - Capital budget -Top down

Bottom upZero - based budgeting