Daily Archives: March 30, 2025

Zero-Based Budgeting: Procedure, Advantages, and Disadvantages

Zero-based budgeting (ZBB) is a budgeting approach that starts from scratch, rather than relying on previous budgets as a baseline. In this method, the budget is constructed from zero, with all expenses requiring justification for each new period. Overview of Zero-Based Budgeting Zero-based budgeting (ZBB) necessitates that all expenditures be justified before inclusion in the…

Budgetary Control System: Advantages, Limitations, and Implementation

A budget is a detailed financial plan that outlines expected income and expenses for a specific period. It serves as a roadmap for resource allocation and guides decision-making to achieve organizational objectives. Control is essential to ensure that the plans and objectives outlined in the budget are effectively achieved. When applied to budgeting, control becomes…