Economics and Performance Budgeting

Topics: Economics, Costs, Program Pages: 1 (316 words) Published: January 14, 2009
Budgeting System Paper The performance budgeting system determines the programs output performance measures, the programs total costs and the costs per output or costs per unit of service. Advantages of the performance budgeting systems are that it provides information on the amount of service that is provided by a human service program and the attendant costs includes determining the cost per output or cost per unit of service and that they raise the level of debate from line-items to programs, program services, program costs and program efficiency. The disadvantage of a performance budgeting system is that the human service agencies must employ sophisticated cost analysis techniques to determine the full cost of programs and to derive accurate unit costs. The program budgeting system measures the programs outcome and the cost of the program for achieving the outcomes. The advantages of the program budgeting system is that it provides information on the amount of client outcomes and the attendant costs that include determining the cost per outcome and that is raises the level of debate from service and efficiency concerns of clients and the effectiveness. A disadvantage of the program budgeting system is that a good outcome that measures the performance is hard to develop. The line-item budgeting system relates the process to input and provides financial management feedback on the extent of revenues and expenses of a human service agency. The advantage of the line-item budgeting system is that staff members, board members, volunteers and citizens can see the source and the amount of the agency’s revenues and see how the funds will be used in terms of staff, equipment, facilities and travel and to see if the budget is balanced. The disadvantage of a line-budgeting system is that it does not include how much service is provided, how much services are or the number of outcomes the agency accomplishes.
Continue Reading

Please join StudyMode to read the full document

You May Also Find These Documents Helpful

  • Performance Based Budgeting Model Essay
  • Essay on performance based budgeting
  • Essay on Budgeting
  • Economics Performance Essay
  • Budgeting System Research Paper
  • ECONOMICS Research Paper
  • Economics Essay
  • economics Essay

Become a StudyMode Member

Sign Up - It's Free