Which budgeting method projects revenues and expenditures monthly?

The method that projects revenues and expenditures monthly is variable budgeting. This budgeting approach is dynamic and allows for adjustments based on actual performance and changing conditions. It takes into account fluctuations in income and expenses, often aligning closely with the operational realities of the organization. By doing so, variable budgeting offers a more responsive and flexible budget that can adapt to unforeseen circumstances or changes in business activity levels.

In contrast, the other methods have distinct characteristics. Fixed budgeting provides a static approach with a predetermined budget that does not change regardless of actual performance, making it less adaptable to fluctuations. Zero-based budgeting starts from a "zero base," requiring all expenses to be justified for each new period, rather than projecting them based on previous budgets. Incremental budgeting adjusts the previous year's budget figures based on a fixed percentage or amount, which may not adequately reflect month-to-month variances in actual performance. Thus, variable budgeting stands out for its ability to project revenues and expenditures on a monthly basis with greater precision.