What are the disadvantages of zero base budgeting, Managerial Accounting

Assignment Help:

Disadvantages of zero base budgeting

1) It is not suitable for all the activities in an organization

2) It has limited application in a profit making organization. In this case it can be applied in case of worker s welfare measures

3) It is not advantageous to apply in R and D activities where it is difficult to define the objectives and goals

4) It is not a panacea for curing all management ills.

5) ZBB is indifferent as to whether total budget is increasing or decreasing

6) In case of large number of decision packages the ranking becomes unwieldy process. This can be  avoided by using computer

7) It increase more paper work

8) It takes more time and efforts

9) Managers often justify current level as minimum level of funding

10) Human problem there will be resistance to change on the part of managers

 


Related Discussions:- What are the disadvantages of zero base budgeting

Marginal costing, marginal costing decision making assignment questions

marginal costing decision making assignment questions

Describe the method of drawing a break even chart, Describe the method of d...

Describe the method of drawing a break even chart. 1) volume of production/output or sales is plotted on horizontal axis , i. e y - axis . the volume of sales or production ma

Time series analysis, Conduct a time series analysis base on the three year...

Conduct a time series analysis base on the three years accounting ratios

Seasonal variations and size of business, Seasonal Variations : Commodities...

Seasonal Variations : Commodities along with seasonal demand results in raised level of working capital requirement. It could be offset through scaling down operations throughout t

International management challenges of globalization., what is the topic ab...

what is the topic about? what are the practical implications? what are the practical criticisms?

Hold-up problem or another problem, According to the Philadelphia Inquirer,...

According to the Philadelphia Inquirer, in 2004 the city of Philadelphia planned to spend $14 million to convert the Convention Center into an appropriate venue for the Republican

150 to 200 words, solutions for (POS) slow printing of sales tickets and un...

solutions for (POS) slow printing of sales tickets and unpredictable action of cash drawers. when credit approvals delayed the checkout process or when the computer was down, thus

Q, Granger products had the following transactions for the just completed m...

Granger products had the following transactions for the just completed month. The company had no beginning inventories. a)$75,000 in raw materials were purchased for cash. b) $7

Bench marking, BENCH MARKING In the current business environment, organ...

BENCH MARKING In the current business environment, organizations are under a lot of pressure to improve performance and that of their divisions or subsidiaries. Bench marking i

What are the advantages of activity based costing, Advantages of activity b...

Advantages of activity based costing 1) It helps understanding the behavior of overhead costs and their relations ship to products services customers and market segments. 2)

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