Management accounting revision question on zero based budgeting based on ACCA & DRURY

You are the management account of group of companies and your managing director has asked you to explore the possibilities of introducing a zero based system experimentally in one of the operating companies in place of its existing orthodox system.

    1. Explain how zero-base budgeting would work within the company chosen
    2. What advantages it might offer over the existing system?
    3. What problems might be faced in introducing a zero-base budgeting scheme?
    4. The future you would look for in selecting the operating company for the introduction in order to obtain the most beneficial result from the experiment.

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