This type of budgeting is managerial device to limit disbursements. “When developed at the agency level, a line-item budget becomes the basic agency financial plan for the fiscal year (Martin, 2001, p.78)”. The advantage of the line item budgeting is that anyone can pick up the line item budget and see the sources and the organizations revenue. It also show how the funds are doing to be distributed among staff, travel, and much more. “The major disadvantages of line-item budgeting systems are twofold. First, line-item budgets say nothing about how much service a human service agency provides, the cost of that service, the number of outcomes the agency accomplished, or their attendant costs” (Martin, 2001, p.83). Another is disadvantage is the limited ability to make changes decision as the environment and conditions change. The purpose of the performance budgeting system is to report the organizations expenditures to the programs by governing programs productivity by functioning processes, programs total cost and service. “The major advantages of performance budgeting systems are that (a) they provide information on the amount of service provided by a human service program and the attendant costs including determination of the cost per output or per unit of service and (b) they raise the level of debate from line-items to programs, program services, program costs, and program efficiency (Martin, 2001, p. 86)”. The weakness of this type of budgeting is that the organization needs to hire a sophisticated cost analysis technique to decide the cost of a program and to obtain precise item rates. The determination of the program budgeting systems is to communicate the organizations expenses to the programs that they provide, to calculate the programs results, and the cost of the programs of attains results. The benefit of this method is that it offers facts of the quantity
This type of budgeting is managerial device to limit disbursements. “When developed at the agency level, a line-item budget becomes the basic agency financial plan for the fiscal year (Martin, 2001, p.78)”. The advantage of the line item budgeting is that anyone can pick up the line item budget and see the sources and the organizations revenue. It also show how the funds are doing to be distributed among staff, travel, and much more. “The major disadvantages of line-item budgeting systems are twofold. First, line-item budgets say nothing about how much service a human service agency provides, the cost of that service, the number of outcomes the agency accomplished, or their attendant costs” (Martin, 2001, p.83). Another is disadvantage is the limited ability to make changes decision as the environment and conditions change. The purpose of the performance budgeting system is to report the organizations expenditures to the programs by governing programs productivity by functioning processes, programs total cost and service. “The major advantages of performance budgeting systems are that (a) they provide information on the amount of service provided by a human service program and the attendant costs including determination of the cost per output or per unit of service and (b) they raise the level of debate from line-items to programs, program services, program costs, and program efficiency (Martin, 2001, p. 86)”. The weakness of this type of budgeting is that the organization needs to hire a sophisticated cost analysis technique to decide the cost of a program and to obtain precise item rates. The determination of the program budgeting systems is to communicate the organizations expenses to the programs that they provide, to calculate the programs results, and the cost of the programs of attains results. The benefit of this method is that it offers facts of the quantity