Which budgeting model involves identifying areas that could be cut without serious impact?

The spending-reduction model focuses specifically on analyzing the budget to identify areas where cuts can be made without causing significant harm to the overall operations. This approach involves scrutinizing existing expenditures and determining where reductions can be implemented while maintaining essential services and functions. The goal is to streamline costs without impeding the organization’s ability to achieve its objectives.

In contrast, the other models have different focuses and methodologies. The spending-ceiling model imposes a limit on total spending, which may not necessarily involve identifying cuts from specific areas but rather caps the overall budget. The incremental model takes prior budgets as a baseline and makes small adjustments for the next budget period, which does not specifically aim at identifying cuts. Zero-based budgeting, on the other hand, requires every expense to be justified for each new period, rather than relying on past budgets, making it more comprehensive and not specifically focused on reductions without serious impacts.