What are the advantages of zero base budgeting, Managerial Accounting

Assignment Help:

Advantages of zero base budgeting

1) it provides a basis for evaluating decision packages on the basis of benefit considerations

2) it reduces inefficiency and achieves high level of effectiveness

3) it is a logical extension of programmer budgeting. Hence the importance is ranking in the order of priorities

4) it has application in private and government organization as well as profit making and non profit making organizations.

5) In government sector it is helpful in identifying and improving the services

6) It can be applied to cost reduction programmers

7) It ensures thorough examination of every function or activity

8) Scarce resources can be utilized effectively

9) The performance of line managers can be judged against their commitments and performance thereof.

10) Long rang goals and plans can be linked with annual budgets through the ZBB. Similarly five year plans are linked with annual budget by government of India.

11) ZBB integrates planning budgeting and control into a single process. It facilitates rational analysis decision making and discarding low priority activities because the decision packages are ranked in the order of importance arrived at on the basis cost benefit analysis. It sharpens the planning and control functions.

12) On the above basis it allocates scares reface resources rationally

13) Inefficient and redundant activities are eliminated and duplicate activities are easily identified

14) ZBB had given thrust to MBO approach.

15) It improves MIS system significantly

16)  It examines all activates whether new or old and justifies the expenditure for the purpose of funding

17)  It is a top to bottom to top approach

18) ZBB uses the concept of participative management by involving the lower level and middle level managers also in the budgetary process.

19) It provides a good training to lower and middle managers in regard to the goals objectives operation and function of the organization and develops a talented and skilled management team

20) It helps to develop human skills and inter personal relationship

 


Related Discussions:- What are the advantages of zero base budgeting

Production during the period, Coolidge Company estimates that its productio...

Coolidge Company estimates that its production workers will work 125,000 direct labor hours during the upcoming period and that overhead costs will amount to $500,000. What predete

#titlCase Study - Labor standards, Case Study Labor standards Geeta & Comp...

Case Study Labor standards Geeta & Company has experienced increased production costs. The primary area of concern identified by management is direct labor. The company is conside

Model construction, Model Construction The success of a simulation exer...

Model Construction The success of a simulation exercise is related to the predictive quality of the underlying model, so that considerable care should be taken with model const

Capital budgeting – planning investments, The management of Popular Stores ...

The management of Popular Stores Sdn. Bhd. are in the process of exploring the company’s investment opportunities.

Cost driver analysis-target costing, Cost driver analysis Cost driver...

Cost driver analysis Cost drivers are factors, which determine the costs of an activity i.e. a change in the cost driver will cause a change in the level of total cost relate

Security analysis and portfolio management, Security Analysis and Portfolio...

Security Analysis and Portfolio Management Define Capital Market Line and how is it dissimilar from Security Market Line. Describe with illustrations?

Determine the cash flow budget - monthly cash disbursement, where can I get...

where can I get the solution for the question on this link: http://www.expertsmind.com/questions/determine-the-cash-flow-budget-monthly-cash-disbursement-30145416.aspx I have att

Assignment, What is the fastest time financial accounting assignment can be...

What is the fastest time financial accounting assignment can be done by your company? It will be a report type format but overview type without going into depth.

Two jobs during the period, The Work in Process account for Monty's Company...

The Work in Process account for Monty's Company contained the following entries: Work in Process Account Debit of $40,000 for direct raw materials Debit of $60,000 for direct labor

Difference between direct labour and indirect labour, Difference between Di...

Difference between Direct labour and Indirect labour Direct labour:- Labour which plays an active and direct part in the production of a particular commodity is called di

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd