Good Stuff Happens in 1:1 Meetings: Why you need them and how to do them well
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9159001 Zero Base Budgeting A And Performance Budgeting
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3. Zero Base Budgeting Zero Based Budgeting implies that managers need to build a budget from the ground up, building a case for their spending as if no baseline existed- to start at zero. The purpose of ZBB is to re-evaluate and re-examine all programs and expenditures for each budgeting cycle by analyzing workload and efficiency measures to determine priorities or alternative levels of funding for each program or expenditure. Through this system, each program is justified in its entirety each time a new budget is developed.
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6. Cost-based vs Zero-based Budgeting N/A Cuts from what was expected Subtractions To justify and prioritize all business activities To justify perceived needs and specify the associated costs of those needs Purpose Individual business activities, projects, contracts, and expenses Changes in inflation Additions Evaluating each business activity Adding to and subtracting from last year’s budget Focus $0.00 Prior period’s costs Starting Point Zero-based Cost-based