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What are the fundamental requirements of ZBB?

A) Development of decision packages

B) Evaluation and ranking of the decisions packages

C) The alternative decision packages

D) Both A and B

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Question added by Md. Moshiur Rahman Sumon , Assistant General Manager( Corporate Finance & Head of Internal Audit) , Progressive Life Insurance Company Limited
Date Posted: 2015/05/08
Tarek Mohammed Hamed
by Tarek Mohammed Hamed , Financial Manager , SABA Medical Company (Saba Polyclinics and Pharmacies)

Zero-Base Budgeting (ZBB) steps:

1-      Establish objectives in consistent with organizational objectives.

2-      Define and devise alternative ways to achieve those objectives.

3-      Chose the most feasible, practical and effective alternative.

4-      Break the chosen alternative into incremental levels of efforts;

5-      Assess the cost and benefits of each incremental level;

 

6-      Rank all the activities of the unit in priority order.

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