TOP-DOWN BUDGETING Definition

Bookmark and Share

TOP-DOWN BUDGETING is where budgets are created by starting from the highest level working towards the bottom using parametric relationships. A monetary value is placed on an individual unit (product, service, materials, and labor hour). An estimate of the number of units required is then converted to currency by multiplying the quantity of units by the unit price.

Learn new Accounting Terms

UNUSUAL EXPENSES/(INCOME) is the sum of: Restructuring Charge, Litigation, Impairment of assets held for use or sale, portion of Purchased R&D written off, and Other Unusual Expense (Income).

NET OPERATING INCOME (NOI) is income after deducting for operating expenses but before deducting for income taxes and interest.

Suggest a Term

Enter Search Term

Enter a term, then click the entry you would like to view.