Question

For this discussion:

• Use the Internet and/or Strayer Library to research zero-based budgeting as an alternative to the traditional budgeting process.
• Take a position as to whether or not a zero-based budget approach dilutes the value of a budget process in the organization.
• Provide a rationale for your position.

Answer 1

Zero-based budgeting (ZBB) is a method of budgeting in which all expenses must be justified for each new period

In traditional budgeting allocation is based on past experience

Zero based budget will encourage the managers to reduce the expenses whereas the traditional budget makes the mangers to estimate more expenditure to receive major chunk of the budget.

This latest approach help compare the projects independently rather than comparing departments..

The zero budget major drawback is however it is time consuming as it requires comparisons between various projects to arrive at the best investment opportunities.

Here my point of view is that zero based budgeting is the future.obviuosly having these many advantages put it on that spot.the disadvantage can be overcome by using latest technologies which will speed up the process of comparison.