Asked by darwin
What are four advantages of Zero-Based Budgeting?
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Answered by
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- Strong cost discipline and waste elimination — because every expense must be justified from zero, unnecessary or low-value activities are more likely to be identified and cut.
- Better alignment of resources with priorities — budgets are built around current goals and needs, so spending is directed to the most important programs and projects.
- Increased accountability and transparency — managers must defend each budget item, which clarifies who is responsible for costs and makes decision rationale visible.
- Encourages efficiency and innovation — the requirement to justify expenditures motivates managers to find cheaper, more effective ways to deliver services.
- Better alignment of resources with priorities — budgets are built around current goals and needs, so spending is directed to the most important programs and projects.
- Increased accountability and transparency — managers must defend each budget item, which clarifies who is responsible for costs and makes decision rationale visible.
- Encourages efficiency and innovation — the requirement to justify expenditures motivates managers to find cheaper, more effective ways to deliver services.
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