A project team is in the process of developing an approximation of the monetary resources needed to complete project work for a large-scale multinational project. Previous projects of this nature have been plagued with cost overruns and the Project Manager has decided to take a different approach to develop the budget for the current project. He has decided to use the Zero-based budgeting approach. A. Critically assess the value of using this approach (Zero-based budgeting), as against other approaches, in developing the budget for this project.
Master Budget
A master budget can be defined as an estimation of the revenue earned or expenses incurred over a specified period of time in the future and it is generally prepared on a periodic basis which can be either monthly, quarterly, half-yearly, or annually. It helps a business, an organization, or even an individual to manage the money effectively. A budget also helps in monitoring the performance of the people in the organization and helps in better decision-making.
Sales Budget and Selling
A budget is a financial plan designed by an undertaking for a definite period in future which acts as a major contributor towards enhancing the financial success of the business undertaking. The budget generally takes into account both current and future income and expenses.
A project team is in the process of developing an approximation of the monetary resources needed
to complete project work for a large-scale multinational project. Previous projects of this nature
have been plagued with cost overruns and the Project Manager has decided to take a different
approach to develop the budget for the current project. He has decided to use the Zero-based
budgeting approach.
A. Critically assess the value of using this approach (Zero-based budgeting), as against other
approaches, in developing the budget for this project.
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