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What are the Features of zero base budgeting
1) Manager of a decision unit has to completely justify why there should be at all any budget allotment for his derision unit. This justification is to be made a fresh without marking reference to previous level of spending in his department.
2) Activities are identified in decision packages
3) Decision packages are ranked in order of priority
4) Packages are evaluated by systematic analysis
5) Under this approach there exists a frank relationship between superior and subordinates. Management agrees to fund for a specified service and manager of the decision unit clearly accepts to deliver the service
6) Decision packages are liked with corporate objectives which are clearly laid down
7) Available resources are directed towards alternatives in order of priority to ensure optimum results
5 application areas of linear programing in management accounting
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5
Inappropriate standards (or targets): This is a problem arising from deficiencies in planning. If not enough time and resources are devoted to setting accurate standards in th
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