What are the features of zero base budgeting, Managerial Accounting

Assignment Help:

What are the Features of zero base budgeting

1) Manager of a decision unit has to completely justify why there should be at all any budget allotment for his derision unit. This justification is to be made a fresh without marking reference to previous level of spending in his department.

2) Activities are identified in decision packages

3) Decision packages are ranked in order of priority

4) Packages are evaluated by systematic analysis

5) Under this approach there exists a frank relationship between superior and subordinates. Management agrees to fund for a specified service and manager of the decision unit clearly accepts to deliver the service

6) Decision packages are liked with corporate objectives which are clearly laid down

7) Available resources are directed towards alternatives in order of priority to ensure optimum results

 


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

Elimination of non-value activity-jit features, Elimination of non-value ad...

Elimination of non-value added activity JIT manufacturing can be described as a philosophy of management, dedicate to the elimination of waste. Waste is stated as anything whic

Inventory control decisions, INVENTORY CONTROL DECISIONS Factories, wor...

INVENTORY CONTROL DECISIONS Factories, workshops, engineering departments handle raw materials used in the manufacture of products. The main objectives in handling these materi

Difference between direct labour and indirect labour, Difference between Di...

Difference between Direct labour and Indirect labour Direct labour:- Labour which plays an active and direct part in the production of a particular commodity is called di

Engineering method-cost estimation method, Engineering method These met...

Engineering method These methods are based on the use of engineering analysis of technological relationship between inputs and outputs e.g. method studies and time and motion s

Internal Controls, What is the definition of internal controls

What is the definition of internal controls

Financial accounting , Financial Accounting Which is concerned with th...

Financial Accounting Which is concerned with the provision of information to external parties outside the organization? It is the procedure of measuring, classifying, summariz

Identification of decision packages - zero base budgeting, Identification o...

Identification of decision packages - Zero base budgeting Each manager should break down his decision unit into smaller decision packages. Top manager may lay down the minimum

Operating leverage, How do you compare two companies operating leverage? Mu...

How do you compare two companies operating leverage? Must the sales volume be set the same or the net operating income?

Working capital management, A managerial accounting strategy focusing mainl...

A managerial accounting strategy focusing mainly on maintaining efficient levels of both components of working capital that is current assets and current liabilities, with respect

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