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MANAGEMENT ACCOUNTING ACCA F5 ACCA P5 Budgetary systems and types of budget BUDGETING AND CONTROL

5 stages involved in zero based budgeting system.



The zero-based budgeting system is budgeting system that require every item of expenditure to be justified as if particular activity or program is taking off the first time.

The following are stages involved in zero based budgeting system

Identification of decision unit/tasks and formulating operational plans

Analyzing/ evaluating the whole budget into decision packages based on decision units/tasks to which cost are assigned

Ranking in priority the decision packages covering the activities, both new and existing in competitive manner



Determination of cut off point , to choose the packages which can be included and those to be rejected, and

Prioritization/selection of the packages, to highlight the ones which fits in with the available resources

By amidu edson

I am certified accountant with more than 5 years of teaching experience. Currently am teaching auditing and assurance, management accounting and financial accounting for student preparing for professional exams such as ACCA and CPA.

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