Zero based budgeting
You work for a large multinational company which manufactures weedkillers. It has been decided to introduce zero based budgeting in place of the more traditional incremental budgeting. The manager of the research and development department has never heard of zero based budgeting.
Required
Write a report to the manager of the research and development department which explains the following.
(a) How zero based budgeting techniques differ from traditional budgeting
(b) How ZBB may assist in planning and controlling discretionary costs
(c) How ZBB will help to control budgetary slack