logo

Solved Assignment on Finance

   

Added on  2021-04-17

6 Pages858 Words47 Views
 | 
 | 
 | 
Running head: FINANCEFINANCEName of the StudentName of the UniversityAuthor note
Solved Assignment on Finance_1

1FINANCEZero based budgeting (ZBB) is a method of budgeting where; the expenses and incomes for each new period must be justified and started from the scratch. Here, the main factor lies in the fact, that each new period is treated as a zero base. Each year the budget starts with a zero base. Each and every cost and incomes related to every organisational department are justified with a zero base for every year ("Forbes Welcome", 2018). Consequently, the budget is prepared for the New Year, regardless of the amount of costs and expenses of the previous budgets. It is based on the basic premise that the costs and the expenses associated with the New Year will be based on the actual data and not on the basis of the previous budget’s historical data. It is assumed that there are no balances which are to be carried forward in the next year.The steps are as follows:Identification of the decision units.Creation of decision packages.Ranking and choosing of packages.Allocation of resources.Consistent monitoring and controlling.Examples of Zero based budgeting:John is the owner of a café in Miami. Recently, his business has been losing money and ithas hit him hard. Consequently, John has decided to look at the various costs and incomes associated with the current year and analysing the same. Instead of looking into the previous yeardata, he starts from the scratch and looks into the current data for the analysis of his business problem. Thus he starts at zero for this.
Solved Assignment on Finance_2

2FINANCEIn this paper, special emphasis will be thrown on the implementation of zero based budgeting in Skyline hospital. ZBB will be implemented into two sections:Medical programsHealthcare programsA budget has been provided below through which a better understanding can be provided in respect of the adjustments for the zero based budget of the hospital. The net revenue of the hospital stands at 88, 55, 640 $. For zero based budgeting, the management must start from the scratch for all these items for making adjustments for the increasing operating expenses.
Solved Assignment on Finance_3

End of preview

Want to access all the pages? Upload your documents or become a member.

Related Documents
Advantages of Zero-based Budgeting over Traditional Based
|9
|1598
|84

Zero Based Budgeting - Essay
|6
|1019
|58

Benefits and Demerits of Budgeting Styles
|10
|2684
|20

Financial Management for the Hotel Industry
|7
|1250
|57

Management Accounting System - Tech
|17
|4392
|23

Key Purposes and Techniques for Budget Preparation
|14
|4861
|68