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Answer Posted / kannan
Zero based budgeting enforces to review the expenditure
periodically as the traditional budgeting system may not be
relevant in the era of high technological advancements with
very high levels of automation resulting in better
utiliation, higher production, better quality , longer life
of the spares ,all with less number of workmen. Hence the
ZBB exercise would bring out unwanted fats remaining
unnoticed to the fore and ensure the organisation stays
trim in this competitive business environment. But the
sucess or the failure would depend upon the cooperation
extended by all the functions of an organisation.
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