zerobase budgeting
Answers were Sorted based on User's Feedback
Answer / kishore g
Zero-based budgeting is a technique of planning and
decision-making which reverses the working process of
traditional budgeting. In traditional incremental budgeting,
departmental managers justify only increases over the
previous year budget and what has been already spent is
automatically sanctioned. By contrast, in zero-based
budgeting, every department function is reviewed
comprehensively and all expenditures must be approved,
rather than only increases.[1] No reference is made to the
previous level of expenditure. Zero-based budgeting requires
the budget request be justified in complete detail by each
division manager starting from the zero-base. The zero-base
is indifferent to whether the total budget is increasing or
decreasing.
The term "zero-based budgeting" is sometimes used in
personal finance to describe "zero-sum budgeting", the
practice of budgeting every dollar of income received, and
then adjusting some part of the budget downward for every
other part that needs to be adjusted upward.
Zero based budgeting also refers to the identification of a
task or tasks and then funding resources to complete the
task independent of current resourcing.
Contents
Is This Answer Correct ? | 7 Yes | 1 No |
Answer / guest
it is a kind of budget where every manager need to show his
requriments, needs to avail the funds
Is This Answer Correct ? | 1 Yes | 1 No |
Answer / a.praveen
zerobase budgeting means,the budget for the present year is also the same amount which is alloted(budgeted) for last year.
there is no change for present year budget.it is a technique of decision making.
Is This Answer Correct ? | 1 Yes | 2 No |
what is the order in praparing the balance sheet, placing of assets
shares convert into share capital what is the journal entry? how many ledgers need to create?
Wht is the differance between Trade discount and cash Discount?
In tally, i want indirect expenses to be an outstanding expense for me in such a way that if i include it in the sales voucher, it should not add to the price of the product but rather only indirect expenses should be credited. How is it possible?
HOW DO PREPARE CASH FLOW
Types of vouchers with explaination
Closing stock not considered in Trial Balance,why?
if company give the purchase order worth of 10,000 (INR) in advance, but the seller only sell around 8,000 (INR)and remain ing Rs 2000 return to the company, so how to deal with this scenario in accounts payable in oracle, can u hide to me
who is debtor? who is creditor?
what is BRS? How to prepare it?
If I purchase and sale of goods at same price then effect in trading, P & L A/c
what will be the journal entry-discount rs 2000 allowed to mr x.and discount received rs 2000 from mr x.actually i am confused that in the first entry both discount a/c and mr x a/c will be credited as per the accounting standards.please help experts.thanks