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Recognition of the Organization's Decision Units and Decision Packages
ZBB decision unit is an operating division for which decision packages are generated and analyzed. It can also be explained as a cost or a budget center. Managers of each decision unit are answerable for developing an explanation of each program to be operated in the next fiscal year or years. In ZBB such programs are termed to as decision packages and each decision package generally will have three or more alternative ways of attaining the decision package's objectives. Shortly, each decision package alternative should contain, as a minimum, goals and/or purposes, resources, activities, and their dollar costs. Also, the decision package must contain an explanation of how it contributes to the mission and aims of the organization.
Implementation of the Decisions Once alternative courses of action have been chosen, they must be implemented as part of the budgeting procedure. The budget is a financial plan
Definition of Cost reduction Cost reduction is planned positive approach to reducing expenditure. Cost reduction exercises are planned campaigns to cut expenditure. It is a con
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The Pinewood Furniture Company Pty Ltd plans to design two lines of chairs in the coming year-lounge and patio. The company is considering introducing an activity-based costing sys
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