Need help with my writing homework on Zero-Base Budgeting for the Institutions. Write a 1750 word paper answering; For the purpose of this research paper, only secondary sources were used. Most of the data that has been referred to is obtained from various business journals, online articles, and most importantly books relevant to the course. Some data was also obtained from websites directly and has been referenced in the bibliography.
Budgeting is an essential phase of managing the activities of the organization. Budgeting is an important tool for the management not only in the manufacturing organization but also in a non-manufacturing organization. A good budgeting system mainly focuses on planning and control. The planning phase concentrates on objective development and preparation of budgets helps in achieving those objectives. Control ensures that the steps taken by the management are planned, and the path to the attainment of the objectives is known. Control also ensures that all parts of the organization work together towards achieving those objectives.
Zero-based budgeting is a planning procedure that requires the manager to start with the assumption that the base entry of all planning items is Zero dollars. The Zero-Based Budgeting was originally formulated to be used in the government sector in a way to justify cost requests for the succeeding year. The Zero-Based Budgeting procedure forces the planner to completely justify the budget. It assumes that the previous year’s budget is not a valid base from which to work.
The Zero-Based Budgeting technique was originally developed for use in government organizations as a way to justify cost requests for the following year. The U.S. Department of Agriculture was the first department to implement Zero-Based Budgeting in the 1960s. Although Zero-Based Budgeting was developed by Texas Instruments in the 1970s, it was initially adopted by many government organizations during the same period of 1970s and 1980s (Daft, 1997). Zero-Based Budgeting gained fame in 1977 when President Jimmy Carter introduced Zero-Based Budgeting into the federal budgeting system.