Interested to Buy Any Domain ? << Click Here >> for more details...
What is Zero Based Budgeting?
- 9 Answers
- 38185 Views
- Capital IQ, I also Faced
- E-Mail Answers
Answers were Sorted based on User's Feedback
Answer / kk
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.
| Is This Answer Correct ? | 149 Yes | 12 No |
Answer / ranadheer
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.
| Is This Answer Correct ? | 33 Yes | 6 No |
Answer / vinotha.v
A method of budgeting whereby all activities are
reevaluated each time a budget is set. Discrete levels of
each activity are valued and a combination chosen to match
funds available
| Is This Answer Correct ? | 28 Yes | 11 No |
Answer / devipriya biswal
zero based budgeting starts from 'scratch' where in each
unit of expenditure needs to be justified for its
existence/continuance for each financial year.Prior
existence of any scheme does not ensure continuance of the
same in the next financial year.In other words each scheme
begins from zero base level.
| Is This Answer Correct ? | 24 Yes | 7 No |
Answer / vijay
A method of budgeting in which all expenditures must be
justified each new period, as opposed to only explaining
the amounts requested in excess.
| Is This Answer Correct ? | 21 Yes | 7 No |
Answer / kannan
Zero based budgeting enforces to review the expenditure
periodically as the traditional budgeting system may not be
relevant in the era of high technological advancements with
very high levels of automation resulting in better
utiliation, higher production, better quality , longer life
of the spares ,all with less number of workmen. Hence the
ZBB exercise would bring out unwanted fats remaining
unnoticed to the fore and ensure the organisation stays
trim in this competitive business environment. But the
sucess or the failure would depend upon the cooperation
extended by all the functions of an organisation.
| Is This Answer Correct ? | 20 Yes | 10 No |
Answer / nicky wadehra
zero base budgeting is a method of budgeting which requires
you to justify all planned expenditures for each of your
new business period
| Is This Answer Correct ? | 9 Yes | 7 No |
Answer / harshal m. janbandhu
Justifing budgeted expenditure in the practice of perfomance to be acheived without reference to perexisting plans or achievement . ZBB rests on the philosophy that all spending need to be justified . each part of a company will start from a zero base each year and has to justify the budget it requires. top managment will only allow the budget when it convinced that the proposed activities represent ' value for money'.and all topics start with the zero point.
| Is This Answer Correct ? | 5 Yes | 8 No |
Answer / santosh
Based on every company it provides the expenditrue on every
individual, like it allocates some expenses on every
associate. If we see in the software companies many of
associates will be moving onsite to offshoore, if the
associate is not allocated to any where but still the
associate is salaried then it can be know a Zero Based
Budgeting.
| Is This Answer Correct ? | 17 Yes | 49 No |
how to treat accounts receivables and accounts payables in accounting. Which entries are done .
What are the main things to see which making a Balance Sheet ??
Can i clarify, whether VAT & Service Tax are Proffit & Loss A/c items (or) Balance Sheet Items.
If DEBT/EQUITY ratio 2:1, is to good or bad for a company? how...??? can u explain it...???
if i get rs.10000 pm as salary what is the pf rates ?
What is the entry for payment made to the distributor after deducting TDS and adjusting the credit note raised by them. For Ex: actual amount to pay rs.1000 TDS deducted rs.200 credit note of rs.500
What is the treatment of Capital Work in Progress as per the International Accounting Standards.
2. You are required to prepare a Profit & Loss Account for the year ending 31st December, 2007 and the Balance Sheet on that date. The Trial Balance of XYZ Ltd. for the year ended 31st December 2007 is as follows:- Trial Balance of XYZ Ltd. as on 31st Dec. 2007 Debit Balances Rs. Credit Balances Rs. Materials used 3,50,000 Sales(including 2% Sales tax) 9,18,000 Cost of Labour 1,50,000 Sale of Scrap 100 Stock, finished and work in process on 31st December, 2006 50,000 Rent received 2,000 Wages : Factory Staff 15,000 Discounts 2,750 Directors Remuneration 50,000 Recovered against fire claim re : Stock 5,000 Salaries : Clerical Staff 75,000 Capital : Equity 25,000 Insurances : Workmen’s Compensation 1,500 Preference- 9% 8,000 General, fire etc. 2,000 Creditors 1,56,000 Directors’ Life Insurance 1,500 Provision for Taxation 1,05,000 Maintenance : Buildings 1,000 Profit & Loss Account 13,750 Plant and Machinery 12,500 Rent and Rates of premises and hire of plant 20,000 Heat, Light and Power 15,000 Experimental and Laboratory Expenses 10,000 Canteen Expenses 5,000 Staff Welfare expenses 2,500 Motor Expenses 12,500 Professional Charges 2,800 Postage and Telephone 3,500 Books, Printing and Stationery 11,000 Sundry expenses 10,000 Carriage and Packing on Sales 3,300 Discounts 5,000 Debtors 1,78,000 Freehold Property 50,000 Plant and Machinery 12,500 Fixtures and Fittings – Offices 3,500 Office machinery and Equipment 3,000 Motor Car and Van 6,500 Stock of materials on 31st Dec. 2007 1,20,000 Bank 38,000 Sales Tax Paid 15,000 12,35,600 12,35,600 Depreciation is to be provided at the following rates: Plant and Machinery 10% Fixture and Fittings 05% Office Machinery, etc. 10% Motor Vans and Cars 25% The stock of finished goods and work in progress as on 31st December, 2007 was Rs. 35,000. Provide for preference dividend and ordinary dividend at 10%. The total taxation liability is estimated at Rs.1,50,000 of which Rs. 75,000 relates to the current year. Debtors include Rs. 10,000 deposited as security against government contracts. The Works Manager is paid partly by salary and partly by a commission; he is entitled to a commission of 5% on the amount by which the surplus in the factory cost exceeds 20% of the sales for the period. Charge the commission if any in the Profit and Loss Account.
What is the Formula of debt equity ratio? Also Define its importance in accountancy.
what you mean by landed cost?
Realization concepts of revenue?
What is Pettycash book ? What ledgers should i make in Tally 7.2 ?
Audit 
