Question

How can performance based budgeting improve managerial efficiency or how can it affect the final budget cut for an organization?

Answer 1

Performance based budgeting is a relationship between the funding for a project and the desired and expected result out of it. This is a tool used by Project managers to cost effectively manage a project. In today's time where cost is something which really matters to any organisations managing it effectively is key. More in Less is something that needs to be considered in a competitive world today. Planning the project so that it does well and eventually leads to profitability in the least budget possible is followed by all the organisations now. These savings would help the organisations to better concentrate on more business and quality.