Why would a company use zero-based budgeting, given that it requires more time and effort from...

Question

Question

Why would a company use zero-based budgeting, given that it requires more time and effort from managers throughout the company?

Answer 1

Answer #1

A company would use Zero based budgeting even though it requires more time and effort from managers for the following reasons:

1. It will result in efficient allocation of resources as it is based on benefits and needs.

2. It leads to identification of opportunities based on current market conditions.

3. It will help in reducing time spent on unproductive and redundant activities.

4. It overcomes the risk of an inflated budget.

5. It improves communication and coordination between employees and result in better decision making.

Answer 2

Similar Homework Help Questions

Why would a company use zero-based budgeting, given that it requires more time and effort from...

Why would a company use zero-based budgeting, given that it requires more time and effort from managers throughout the company?
How does program planning budgeting differ from zero-based budgeting?

How does program planning budgeting differ from zero-based budgeting?
Explain 2 different types of budgets, and discuss why a company would choose one type of...

Explain 2 different types of budgets, and discuss why a company would choose one type of budget over another. Discuss the advantages and disadvantages of the zero-based budgeting approach.

list and discuss the pros and cons of using historical-based budgeting? Why type of companies or...

list and discuss the pros and cons of using historical-based budgeting? Why type of companies or industries would benefit the most from this strategy?
In an effort to learn more about the people who use it's facility, a regional work...

In an effort to learn more about the people who use it's facility, a regional work out center has compiled the following information below. Based on this information, answer the following questions: (20 pts) a. What is the probability that a customer is interested in aerobics? b. What is the probability that a customer is over 30 and interested in weight training? c. Given a customer is under 30, what is the probability that he or she is interested in...
Why would a company choose to use process costing? Why would a company choose to use...

Why would a company choose to use process costing? Why would a company choose to use job order costing? Create a company that either uses process costing or job order costing and describe the operating cycle for your company (from the purchase of raw materials, to their requisition to make something, to the finished product, and finally to selling an item.)

Why do you think GAAP requires consolidation when a company acquires 50% or more of the...

Why do you think GAAP requires consolidation when a company acquires 50% or more of the voting stock of another company?
if you plotted your velocity vs time would the slope be negative, positive or zero? why?...

if you plotted your velocity vs time would the slope be negative, positive or zero? why? llould be a div ed Distance from start Time to get there 5 m 10 m 15 m 12.05 20 m 15
The following synthesis requires more than one step. Specify the reagents you would use to carry...

The following synthesis requires more than one step. Specify the reagents you would use to carry it out. Specify reagents using letters from the table, first reagent on the left. The reagents are (in order of use):

Capital budgeting analysis not only requires the evaluation of cash flows but also requires the understanding...

Capital budgeting analysis not only requires the evaluation of cash flows but also requires the understanding of the origin of those cash flows. Based on your understanding of cash flows in a firm, complete and answer the following questions: The present value of cash flows can be used to determine the basis of a firm's value Ideally, capital budgeting analysis should take cash flows into account on a monthly basis on an annual basis exactly when they occur Understanding the...