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Types of budgeting depend on the use of the budget which could either be personal or business budgets. Business and Personal Budgets. Budgeting is simply the creation of a plan to properly manage money. A budget usually covers a period of time; for instance, a one-year or five-year budget plan.
Zero-Based Budget. Zero-based budgeting is an example of centralized budgeting. Owners and executives start each department at zero and set limits equal to expenditure estimates for running a department. Any changes must have justification from an operational manager. Additionally, an increase in one area requires a decrease in another.