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Application of zero base budgeting
In the following areas ZBB may be applied:
1) redundant schemes may be discontinued
2) identify the duplicate schemes and merge them into single and useful scheme/activity
3) schemes and services with cost effective alternative may be chosen
4) maintain the same activity but with change in objective
5) Change in periodicity. Instead of yearly vehicle tax collection, life time vehicle tax has been collected in Andhra Pradesh. This reduces the administration cost.
6) Wherever benefit hiring /sub contracting option may be implemented
7) Schemes with subsidy. The subsidy may be rationalized
8) Grant in aid expenditure in respect of education sciences and technology research and development medical and health rural development etc.
9) Computerization
10) Use of ABC analysis
11) Cancellation of posts which are redundant in course of time
12) Elimination of low priority item
Production As you would suspect, effectively directing an organization needs prudent management of production. Because this is a hands-on process, and often entails dealing wit
Q. Evaluate a proposed investment? BMP Consulting (BMPC) conducted an analysis of Delta Corp. and found that the firm consists of two different divisions: Pet Lovers, a pet sup
VALUE CHAIN ANALYSIS Every firm is a collection of activities that are executed to design, generate, market, deliver and support its products or services. Value chain analysis
directing[ budgeting
Operating Cycle Method In this way, total operating expenses for a period are divided via the number of operating cycles in the relevant period to compute the cash need for wor
Gardner Manufacturing Company produces a product that sells for $120. A selling commission of 10% of the selling price is paid on each unit sold. Variable manufacturing costs are $
stanley shoe company established a line credit with a local bank. the maximum amount that can be borrowed under the terms of the agreement is $100000 at an annual rate of 12%. a co
Extensions to Linear Programming In many real situations the solutions to linear programming models make sense only if they have integer values. Rounding off the linear programmi
Calculation
Explains how activity –based techniques can be used to improve performance
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