The Zero Based Budgeting Accounting EssayZero-based budgeting avails a better approach to dealing with the drawbacks associated with incremental budgeting. Unlike in incremental budgeting, zero-based approach does not necessarily start from the previous years budget level; instead, the existing operations are evaluated and continuance of the operation or activity ought to be justified on the basis of its utility and its need to the company. Zero-based budgeting pursues to justify resource allocation within individual budget scheme, irrespective of prior period budgets. The budget in this case is initially allocated as zero unless the manager responsible makes the case for resource allocation. Every plan in this case is justified as per the total cost and the total benefits and past performance is not in any way referred as a building block.
