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    Natalia44's Avatar
    Natalia44 Posts: 6, Reputation: 1
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    #1

    Jul 13, 2009, 06:08 AM
    Accounting basic
    What are the two basic philosophies as to the levels at which budgeted amounts should be set?
    paraclete's Avatar
    paraclete Posts: 2,706, Reputation: 173
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    #2

    Jul 13, 2009, 09:21 PM
    When budgetting you can use the projections method which takes last year actual and projects it using inflation or some other factor. Usually unreliable
    Or
    You can use the zero base method which means you examine every item to determine whether it will be needed or not. Highly reliable but requires significant resources
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