Advantage and disadvantages of zero based budgeting, Cost Accounting

Assignment Help:

Advantage and Disadvantages of Zero Based Budgeting

Advantages

1. Resources allocation is more efficient.

2. Focus attention on values for money and makes clear relationship between output and input.

3. Develops a questioning altitude and makes it easier to identify obsolete as well as inefficient and less cost effective operations.

4. Leads to greater management and staff knowledge of operations.

Disadvantages

1. Time consuming.

2. High skills essential.

3. May encourage wrong impression that every decisions must be made via budgets.

4. Short- term benefits may be emphasized to the detriment of long-term benefits.


Related Discussions:- Advantage and disadvantages of zero based budgeting

Methods of inventory valuation, The beginning inventory balances of Item X ...

The beginning inventory balances of Item X on August 1 and the purchases of the item during the month of August were as follows: August 1 Beginning Inventory 600 units @ $10.00

Single limiting factor, Single Limiting Factor Where a single limiting...

Single Limiting Factor Where a single limiting factor exists for the decision making sequence may be implemented given as:- - Compute the contribution per unit of limiting

Planning, what is planning and what part of this activity would you describ...

what is planning and what part of this activity would you describe as planning in the situasion above

Conceptualizing job costing, Conceptualizing Job Costing Start to devel...

Conceptualizing Job Costing Start to develop an understanding of job costing by thinking about the simple illustration. Jack Castle owns an electrical constricting company, Cas

Chrome-it, I would like to know the solution on this one.

I would like to know the solution on this one.

Evaluate the acquisition of manufacturing equipment, Evaluate the Acquisiti...

Evaluate the Acquisition of Manufacturing Equipment XYZ Limited is a medium sized company providing a range of medical solutions. You, the financial manager has been asked to e

Direct materials total variance, Direct Materials Total Variance Direc...

Direct Materials Total Variance Direct materials total variances refer to the difference between the standard direct material cost of the actual production volume and the actu

Variance analysis, Variance Analysis This section describes how labour...

Variance Analysis This section describes how labour, material and overhead variances are calculated and what causes every of those variances. A chart is given also to describe

Calculate manufacturing overhead for the year, Baka Corporation applies man...

Baka Corporation applies manufacturing overhead on the basis of direct labor-hours. At the beginning of the most recent year, the company based its predetermined overhead rate on t

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd