wht is zero based budgetting
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Answer / rahul gupta
Zero-based budgeting is a technique of planning and
decision-making which reverses the working process of
traditional budgeting. In traditional incremental budgeting,
departmental managers justify only increases over the
previous year budget and what has been already spent is
automatically sanctioned. No reference is made to the
previous level of expenditure. By contrast, in zero-based
budgeting, every department function is reviewed
comprehensively and all expenditures must be approved,
rather than only increases. Zero-based budgeting requires
the budget request be justified in complete detail by each
division manager starting from the zero-base. The zero-base
is indifferent to whether the total budget is increasing or
decreasing.
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Answer / devendar.edla
it is one type of budget which starts from scratch zero
| Is This Answer Correct ? | 11 Yes | 4 No |
Answer / antra
A method of budgeting in which all expenses must be justified for each new period. Zero-based budgeting starts from a "zero base" and every function within an organization is analyzed for its needs and costs. Budgets are then built around what is needed for the upcoming period, regardless of whether the budget is higher or lower than the previous one.
Because of its detail-oriented nature, zero-based budgeting may be a rolling process done over several years, with only a few functional areas reviewed at a time by managers or group leadership.
Zero-based budgeting can lower costs by avoiding blanket increases or decreases to a prior period's budget. It is, however, a time-consuming process that takes much longer than traditional, cost-based budgeting.
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Answer / alka jharbade
The base is taken as zero in the financial year. This is
also known as traditional budget.
| Is This Answer Correct ? | 2 Yes | 1 No |
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