Discuss the concept zero Base Budgeting highlighting its aims and objectives.
Zero Base Budgeting (ZBB) is a budgeting method that requires all expenses to be justified and approved for each new period, starting from a "zero base." Unlike traditional budgeting, where past budgets are used as a basis for new budgets, ZBB assumes that no expenses, programs, or activities are automatically continued. Every department must review its activities, assess their necessity, and provide justifications for their budget requests. This approach is intended to ensure that only the most essential and cost-effective programs are funded.
The primary aim of Zero Base Budgeting is to allocate resources efficiently by evaluating each function and activity in an organization. It encourages a more thorough examination of the organization’s goals, the alignment of its expenditures with those goals, and the necessity of each expenditure. ZBB aims to optimize the allocation of funds by ensuring that resources are spent on activities that contribute directly to the organization's _____ _________ _______ ________ ____ _____ _______ __________ ___ _________ ____.
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