Zero Base Budgeting
13 September 2012
Trainee accounting technicians need a knowledge of the planning and decision making technique Zero Base Budgeting which appears in Unit 9, Contributing to the Planning and Control of Resources.
Zero Base / Priority Base Budgeting is defined in CIMA terminology as: "A method of budgeting whereby all activities are re-evaluated each time a budget is set. Discreet levels of each activity are valued and a combination chosen to match funds available."
A further definition is "an operating planning and budgeting process which requires each manager to justify the...