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Case study on zero based budgeting in india

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From ZBB to a Zero-based Mindset

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Zero-Based Budgeting (ZBB) to Zero-Based Mindset (ZBx) | Accenture

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The return of zero-base budgeting

Whilst this approach might be useful in a predictable, static environment, it comes with drawbacks. Managers may also be motivated to spend everything in their budget towards the end of the year to ensure they receive the same amount, or more, in the following year. Zero-based budgeting is an approach to budgeting where all expenses must be justified at the start of each new budgeting period.
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By reverting the budget to zero, zero-based budgeting ZBB can more effectively assign costs to business priorities and outcomes. This breaks with the traditional budgeting process, in which organizations base costs on whatever was spent in prior periods and then just add arbitrary allowances for growth or reduction. Cost Optimization Cost Optimization: A proactive, strategic approach to costs Prioritize your cost initiatives by business outcome. Clarifying what ZBB is and does is a critical first step to capturing its value and smoothing the way for successful implementation. But, the objective is to deliberately choose how and what to spend to fund the business results or strategic outcomes identified in the strategic plan.
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