Explain decision unit - zero base budgeting, Managerial Accounting

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Explain decision unit - zero base budgeting

Decision units: an organization is divided among decision units. The manager of the decision unit justifies the relative budget proposal. Any of the bases may be adopted for dividing the organization among the decision units

The division of organization among its decision unit should be logically links with organizational objectives. Zero base budgeting is a result oriented technique and division of organization among decision units should be in line with its objects.

 


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