Out put - based funding is the kind of funding which is based or focuses on the expected output and outcome. This has some advantages in that one can be able to project the outcome. Disadvantage is that the expected outcome is dependent on the prevailing circumstances during the process of production process.
Input based funding is a funding approach that where funds are allocated basing on predetermined activities.
This has some advantages in that there equity in funds allocation because the activities are clearly understood. one can also be able to predict a budget that will be sufficient for the institution.
in a school setting, input based funding may have some disadvantages in that at times management might allocate funds basing on student enrolment without putting in consideration the Key Performance Indicator such as performance.