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ACCA F5 ACCA P5 MANAGEMENT ACCOUNTING

what is zero based budgeting?



Zero based budgeting is approach to budgeting in which budgeting process is done as if the company starts its operations on the year of budgeting. It require activities to be evaluated each time a budget is produced. Each functional budget is prepared on the basis that each cost element is justified as though the activities were occurring for the first time. No item of expenditure is included in the budget without full prior evaluation and justification.
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Categories
ACCA F5 ACCA P5 MANAGEMENT ACCOUNTING

Five (5) advantages of zero based budgeting over traditional budgeting.



Zero based budgeting is approach to budgeting in which budgeting process is done as if the company starts its operations on the year of budgeting.=&0=&
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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.

need of human resource accounting



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. read more

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ACCA F5 ACCA P5 MANAGEMENT ACCOUNTING MANAGEMENT ACCOUNTING REVISION QUESTIONS

Management accounting revision question on zero based budgeting based on ACCA & DRURY

Management accounting revision question on zero based budgeting based on ACCA & DRURY

You are the management account of group of companies and your managing director has asked you to explore the possibilities of introducing a zero based system experimentally in one of the operating companies in place of its existing orthodox system.
REQUIRED:

    1. Explain how zero-base budgeting would work within the company chosen
    2. What advantages it might offer over the existing system?
    3. What problems might be faced in introducing a zero-base budgeting scheme?
    4. The future you would look for in selecting the operating company for the introduction in order to obtain the most beneficial result from the experiment.
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