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Q. Explain Zero based budgeting?
Zero based budgeting (ZBB) is a method of budgeting, which requires each cost element within the budget to be specifically justified as though it was being under taken for the very first time, without approval, the budget allowance would be zero. Therefore each cost, every period, must be 'justified' before it can be included in the budget, and employees are encouraged to find alternative ways of accomplishing the same thing but for less money.
Question 1: An organisation has to scan the external environment to identify possible opportunities and threats and the internal environment for its strengths and weaknesses be
Product Mix - Satchmo & Satchmo Electronics developes two products that can be make on two different production lines. Both products have their lowest production costs when produc
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Problems of profit based measures - Absolute profit measures ignore the amount of investment in the division e.g. does not look at profit relative to capital employed. -
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