Sales: Sales: Support: Support:
Academic writing services  
Custom written essay Book report Research paper Dissertation Resume and CV Editing and proofreading  
main menu
By ordering custom paper you get
  • 24/7 Support
  • Over 100 professional US Writers
  • 300 words per page
  • Flexible discount system
  • FREE revision (within 2 days)
  • Anti-Plagiarism Software Check
we accept
sample essays
Accounting Essays
Admission Essays
Analysis Essays
Art Essays
Biography Essays
Biology Essays
Book Review Essays
Business Essays
Case Studies Essays
Cause and Effect Essays
Character Analysis Essays
Communication Essays
Communication and Media Essays
Compute Technologies Essays
Consideration Essays
Controversial Essays
Description Essays
Economics Essays
Education Essays
Evaluation Essays
Explanation Essays
History Essays
Job Essays
Law Essays
Management Essays
Medicine Essays
Music Essays
Personal Essays
Personal Experience Essays
Persuasive Essays
Persuasive Speech Essays
Philosophy Essays
Political science Essays
Politics Essays
Proposal Essays
Psychology Essays
Reflective Essays
Religion Essays
Research Essays
Response Essays
School Essays
Science Essays
Sociology Essays
Technology Essays
World Literature Essays
Zero-Base Budgeting essay
← Elastic and Inelastic PriceIntroduction to Macro Economics →

Zero-Base Budgeting. Custom Zero-Base Budgeting Essay Writing Service || Zero-Base Budgeting Essay samples, help

Zero- base budgeting is a planning system for the expenses f a project where one assumes a budget of zero. After considering zero costs of the projects, one needs to make several adjustments, re-evaluating the budget request thoroughly starting from the zero -base. Under zero-base budgeting, there is no base year that one needs revisit in every annual evaluation. One needs to approve every item of the budget, unlike the other budgeting techniques that only make adjustments on changes. The budgeting technique may also refer to zero-sum budgeting, where the manager budgets every single unit of revenue that the organization receives. The manager will then adjust downwards for every element that requires upward adjustment (G. Bojadziev & M. Bojadziev, 2007).

An example of a company in the United States that employs zero-base budgeting is the Florida Power and Light Company. The company began using the zero -base budgeting technique in 1977 in administering budgets for the various departments within the company. Initially, the company treated older problems with more priority than new problems. This was because management had already budgeted for the old problems, unlike the new company problems that the company was in the initial stages of budgeting. However, since the company adopted the zero-base budgeting technique, it always treats all problems, both old and new, with the same attention. According to reports from research institutions, the director of the light company claimed that the budgeting technique has been effective in terms of controlling costs (Gianakis & McCue, 1999).

Why the Budgeting Technique Is Appealing

The zero-base budgeting technique is appealing to many managers mainly because of the way it helps in minimizing costs. As it is evident in the Florida Power and Light Company, zero- base budgeting requires managers to consider every single unit of income that the company gets as revenues. The method enhances a high degree of accountability from the management of any organization.

Advantages and Strengths of Zero-Base Budgeting Technique

Zero-base budgeting has several strengths

First, the technique ensures high levels of efficiency in terms of allocation of resources. This is the case because the technique bases its resource allocation on current needs and benefits of a project, unlike other techniques that base their allocations on historical data.

Secondly, the technique acts as an impetus to managers to look for cost effective ways of improving the operations of a company. Zero-base budgeting aims at accounting for every unit of revenue available. Thus, management has to come up with cost effective ways of running the company’s daily routines.

The technique also fosters motivation of staff by providing workers with an initiative and responsibility in making critical decisions within the organization (Dropkin, Halpin & Touche, 2008).

The method also fosters effective communication and co-ordination within the company. Accountability requires that there is transparency in the running of affairs within the various departments of a company.

The method also makes management look for avenues of outsourcing.

Weaknesses of Zero-Base Budgeting

Most companies have claimed that the budgeting technique is time consuming and extremely labor intensive. This is because the technique requires critical examination of each program in the project.

Secondly, the method is usually problematic when it comes to justification of every line element of the project, especially for departments that have intangible inputs.

Another weakness of zero-base budgeting is that it is extremely complex that it requires training. Training of staff is always costly for upcoming firms that are striving to cut on costs as a means of raising revenue.

Lastly, the method may be ineffective for companies that operate on a global scene, since the information that backs up the process of budgeting may be overwhelming (G. Bojadziev & M. Bojadziev, 2007).

In conclusion, companies that are in the development stage are best suited for a zero-base budgeting technique. This is because such a company does not have an immense information bank that is a disadvantage to this technique. Similarly, the method will ensure a high level of creativity within management.

Zero-Base Budgeting. Custom Zero-Base Budgeting Essay Writing Service || Zero-Base Budgeting Essay samples, help

Order Now
Order nowhesitating

Related essays

  1. Introduction to Macro Economics
  2. Consumer Prices Stay Even
  3. Elastic and Inelastic Price
  4. AICPA’s Code of Professional Conduct

order now

Order now
why choose us
96% of satisfied returning customers
24/7 customer support
A wide range of services
Up-to-date sources
100% privacy guaranteed
MA/PhD writers
Custom written papers only
Free plagiarism report (on demand)
Free revision (within 2 days)
Free cover and bibliography page
Direct communication with a writer
Are your writers qualified for the custom writing?
How quick can my order be accomplished?
Is it legal to buy custom essays, term papers or book reports from your company?
Are essays offered by your company truly custom-written?
Is it safe to buy from
How secure is the payment system of your company?
Can I submit custom essays or term papers done by your company as my own?
How can I contact your company if I've got problems with my ordered paper?

Finally, I've found the real custom writing service . My grades are saying "Thank you, it's been a pleasure to work with you."

Jamal, South Africa

I can't believe you finished my essay under such a short deadline! You saved me from a disaster once again. You guys deliver exactly what you promise. I'll be back. That's for sure!

William H , Kansas, US

contact us
Toll free for US & Canada only. International callers are charged for outgoing calls.

Our phone numbers: provides custom term paper writing/rewriting services inclusive of research material for assistance purposes only. The term papers should be used with proper reference and are not meant to replace actual assignments.

Get 15% off your first custom essay order

Order now

from $12.99/PAGE