The traditional budget was first proposed in James McKinsey’s book “Budgetary Control” published in 1923. It has been widely adopted notwithstanding its increasingly recognized limitations.  These limitations occasioned a variety of workarounds including zero based budgeting, flexible budgeting, activity-based budgeting, S&OP and Integrated Business Planning (IBP). None of which proved particularly effective.

All of which serves to underscore OIS’s budgeting advantages where Operational Budget (OB) is defined as OIS + all strictly fixed costs. See Table 1 in article.