Contributing Member of the Accounting & Financial Analysis Councils

Names and details of certain GLG News authors are available only to GLG Clients and Council Members. GLG News authors are subject-matter experts within the GLG Councils and are available for expert consulting - by phone, in-person, or written analysis. To find out how to become a GLG client or Council Member, click here.

GLG News by this Author

Analyses are solely the work of the authors and have not been edited or endorsed by GLG.

GLG News is now G+ Insights

G+ is a community for professionals, academics and entrepreneurs to connect through online discussions and in-person meetings. You will continue to see G+ Insights (formerly GLG News) here as well as on the G+ website, where you can share and discuss the G+ Insights you read.

ZBB or Fuzzy Budgeting

January 4, 2008

Analysis of:Duncan Williamson : Zero Base Budgeting | www.duncanwil.co.uk

This problem seems to be an old one as the world. Should we rely on historical data or are we enough accurate and able to predict the future based on current assumptions? ZBB is relying on the second approach. Especially in case when the resource consumption is not repeatable from period to period e.g. new projects. Anyway an incremental budgeting should be crashed with ZBB. Cost pools can be tailored even to a single head (or FTE); single and named responsibility for a budget and at the same time reconciled with a global cost value or profit center, Next, it has to be as the top-down budgeting, iteratively reconciled. some depts may have an incremental budgeting every year, the other ones only ZBB for the sake of large resource value involved. In this case if we consider an accurate cost mgmt, the question is solutable using Time-Driven ABC methodology. The resource efficiency as well the whole organization agility is translated into customer satisfaction.

Page : 11 to 1 of 1

Subscribe to Updates

By RSS