Zero-based Budgeting - Disadvantages

Disadvantages

  1. More time-consuming than incremental budgeting.
  2. Justifying every line item can be problematic for departments with intangible outputs.
  3. Requires specific training, due to increased complexity vs. incremental budgeting.
  4. In a large organization, the amount of information backing up the budgeting process may be overwhelming.

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