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How zero-based budgeting may assist in budgeting plainning and control?

In: Budgeting and Forecasting [Edit categories]

Answer:

Zero budgeting assumes that unlike the traditional budgeting system, there are no "givens". By implication, the idea of using what happened last year as the starting figure for allocation does not arise. Every activity must justify afresh (as if it never existed) and merit any resource allocation to it. This provides an incentive to managers to be focussed in their planning, and goal oriented in their budgeting. Also, that managers are forced to plan, performance evaluation and control become easier .

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DURODOLA VICTOR O

Nigeria

First answer by VICTOR DURODOLA. Last edit by VICTOR DURODOLA. Contributor trust: 18 [recommend contributor ]. Question popularity: 21 [recommend question].

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