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hello sir
sir please discuss me about Zero base budget and Incremental budget. is it important topic ?It will not be 20 marks, but it could easily be a part of a question (but only written – not calculation).
Incremental budgeting is taking last years figures and adjusting for expected inflation and for changes in the size of the business. However it does assume that we continue operating in the same way as last year.
Zero based budgeting considers all different ways of operating, costs them out and chooses the best, and then budgets.
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