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How zero-based budgeting may assist in budgeting plainning and control?
Wiki User
∙ 16y ago
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
Wiki User
∙ 16y ago
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