A budget that is constantly updated so that as one month or quarter ends, another is added to the budget projections A budget that covers a range of potential outcomes by allowing variable expenses to adjust based on sales volume A budgetary restriction occurring when funds are committed for a designated future purpose A budget that does not fluctuate with activity level Every expenditure item must be justified to be included in a new budget Unattainable budget standards may discourage employees and reduce productivity Group of senior-level personnel responsible for overseeing budget development and monitoring adherence to the budget throughout the year Participative approach to budgeting The prior year's budget is used as a baseline for the following year so only new budget issues have to be evaluated Mandated approach to budgeting Can be intentionally added as a "cushion" during the budget process or unknowingly perpetuated through incremental budgeting