- ii. provides visibility of the organisation and helps to identify the performance gap or ii. provides visibility of the organisation and helps to identify the performance gap or opportunities that may arise.
- iii. approach delivers better cost containment by improving the bottom line taking into account iii. approach delivers better cost containment by improving the bottom line taking into account each and every activity that incurs costs.
- iv. advantage is that any kind of non-value-added activity or function can easily be iv. advantage is that any kind of non-value-added activity or function can easily be diagnosed for taking corrective measure or removing them.

## Disadvantages:

- i. a few other approach the activity-based approach increase workload with structural i. a few other approach the activity-based approach increase workload with structural implications.
- ii. requires the huge manpower and financial resources. ii. requires the huge manpower and financial resources.
- iii. pointed out another shortcoming of this approach is that it emphasizes on the iii. pointed out another shortcoming of this approach is that it emphasizes on the contemporary goal rather than the long-term strategy.

## (3) Value Proposition Budgeting Approach:

Value proposition budgeting is really an effort about making sure that everything that is included in the budget delivers value for the business. The value proposition budgeting aims at avoid unnecessary expenditures. Although it is not as precisely aimed at that goal as our final budgeting option, zero-based budgeting. In value proposition budgeting, the budgeter considers the following questions:

- a. is this amount included in the budget? a. is this amount included in the budget?
- b. the item create value for customers, staff, or other stakeholders? b. the item create value for customers, staff, or other stakeholders?
- c. the value of the item outweigh its cost? If not, then is there another reason why the cost is c. the value of the item outweigh its cost? If not, then is there another reason why the cost is justified?

## (4) Rolling (Continuous) Budgeting approach:

Rolling budgeting is a rigorous budgeting approach. The approach as its name indicates that it continuously adds a new budget period to replace the previous one as it expired. This may lengthen the budget allocation and mainly its period. Advantages:

- i. major advantage of this approach is that the rolling forecast keeps you stay on top of all i. major advantage of this approach is that the rolling forecast keeps you stay on top of all changes, threats and opportunities.
- ii. approach allows for the refinement of the financial plan and the broader strategy. ii. approach allows for the refinement of the financial plan and the broader strategy.
- iii. approach supports scenario planning, and thus, drives decision-making. iii. approach supports scenario planning, and thus, drives decision-making.
- iv. approach helps in aligning planning and budgeting process with any strategic goals. iv. approach helps in aligning planning and budgeting process with any strategic goals.

## Disadvantages:

- i. approach is time-consuming as it adds new budget periods. i. approach is time-consuming as it adds new budget periods.
- i.
- ii. approach transforms budgeting into a monthly or quarterly activity instead of being done ii. approach transforms budgeting into a monthly or quarterly activity instead of being done once a year.
- iii. budget consumes resources for long periods. iii. budget consumes resources for long periods.

## (5) Minimal level Approach:

The minimum level approach indicated that an organisation establish a base amount for budget items and requires explanation or justification for any budget amount above the minimum or base. This base notably less than the base used in the incremental approach. It is likely is the minimum amount required to keep a program or organizational unit viable. Some organisation, especially units of Government employ a variation of the minimum level approach, named as 'Zero -base- budgeting'. In fact, the budgeting for objective is a variation on the minimum level approach that combines elements of activity-based and zero-based budgeting with a need to live within fixed financial constraints. The approach its own merits as it improve on the incremental approach by questioning the necessity for cost included in the base of the incremental approach. Again, the approach can be used in budget research and development. But the approach is criticised as it is very time consuming.