What type of budgeting is described as adjusting expenditures based on revenue estimates?

Variable budgeting is characterized by its flexibility to adjust expenditures in response to changing revenue estimates. This budgeting method allows sports organizations and athletic programs to align their spending with actual financial performance rather than sticking to a predetermined budget. For instance, if revenue estimates increase due to higher ticket sales or fundraising efforts, the organization can allocate more funds to different areas, such as equipment or facilities. Conversely, if revenue falls short, expenditures can be decreased accordingly.

This approach contrasts with fixed budgeting, where expenditures are set at a specific amount and do not adjust based on revenue changes. Lump sum budgeting involves allocating a total sum for a specific purpose without itemizing expenses, making it less adaptable to fluctuations in revenue. Line item budgeting, on the other hand, focuses on detailed categorization of costs rather than adjusting expenditures based on income levels. Therefore, variable budgeting is most effective for managing finances dynamically in response to actual revenue situations.