5 disadvantages of zero-based budgeting

5 disadvantages of zero-based budgeting

Zero-based budgeting emerged in the late 1960s as a response to incremental budgeting. With zero-based budgeting, all budgets start at zero and activities/costs are only allowed if they are justified under investigation. All requests for resources must be presented and evaluated on the basis of cost-benefit. Zero-based budgeting is best suited to discretionary spending where there is no clearly defined input-output relationship such as in marketing, research and development, and training or public sector organization such as district councils. read more

Purpose of preparing the budget in the organization.

Purpose of preparing budget in the organization.

A budget is the quantitative expression of a plan of action prepared for the entire organization or for the various departments or for various functions involved in the organization.

The following are the purpose of preparing the budget in the organization: read more

Auditor – meaning

Auditor - meaning

The auditor is the name of the person who conducts the audit, usually the engagement partner or other members of the engagement, or, as applicable to the firm.

The auditor is responsible for planning, collecting audit evidence and issuing the audit reports. For financial statement audits, the auditor is usually someone with a qualification in financial accounting and who is approved by a professional body or laws to practice auditing. read more

Engagement partner – meaning

Engagement partner - meaning

The engagement partner is the partner or another person in the audit firm who is responsible for audit engagement and its performance, and for auditor’s report that is issued on behalf of the firm, and who were required, has the appropriate authority from a professional, legal or regulatory body. read more