description its purpose. Delinitions Terrms 1. An approach that requires all expenses to be justified for each new budget 2. A formal statement of future plans, usually expressed in monetary terns. 3. Approach in which top management passes down a budget without employee input Zero-based budget 4. Management's use of budgets to see that planned objectives are met Budget 5. A plan showing units to be sold; the usual starting point in the master budget process. Top-down budgeting 6 A budgetary cushion used to meet performance targets. Budgetary control 7. Budgets that are revised by adding a new quarterty budget to replace the quarter that just elapsed 8. A report that shows predicted balances of assets, liabilities and equity at the end of a budget period