Professional Documents
Culture Documents
Performance Budget
Performance Budget
Performance Budget
Disadvantages
What Is a Performance Budget?
A performance budget is one that reflects both the input of resources and the
output of services for each unit of an organization. The goal is to identify and
score relative performance based on goal attainment for specified outcomes.
This type of budget is commonly used by government bodies and agencies to
show the link between taxpayer funds and the outcome of services provided
by federal, state, or local governments.
KEY TAKEAWAYS
● Performance budgets reflect the input of resources and the output of
services for each department or unit of an organization.
● They are designed to motivate employees' commitment to produce
positive results.
● Disadvantages include the potential for disagreement over spending
priorities and a lack of unified cost standards.