Advantages
- Efficient allocation of resources, as it is based on needs and benefits rather than history.
- Drives managers to find cost effective ways to improve operations.
- Detects inflated budgets.
- Increases staff motivation by providing greater initiative and responsibility in decision-making.
- Increases communication and coordination within the organization.
- Identifies and eliminates wasteful and obsolete operations.
- Identifies opportunities for outsourcing.
- Forces cost centers to identify their mission and their relationship to overall goals.
- Helps in identifying areas of wasteful expenditure, and if desired, can also be used for suggesting alternative courses of action
Read more about this topic: Zero-based Budgeting
Famous quotes containing the word advantages:
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—Ronald Reagan (b. 1911)
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—Leontine Young (20th century)
“[T]here is no Part of the World where Servants have those Privileges and Advantages as in England: They have no where else such plentiful Diet, large Wages, or indulgent Liberty: There is no place wherein they labour less, and yet where they are so little respectful, more wasteful, more negligent, or where they so frequently change their Masters.”
—Richard Steele (1672–1729)