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Which of the following organsations would zero based budgeting be best to use as Its planning system?
1)Public high school with allocated budget from the government
2)Private high school with fees charged to students
3)Private sector organisation that operates in a stable market environment
4)Public listed company in construction industryI think answer should be option 4 sir
but actually the answer is option 1
I didnt get why is this
can you do clarify me all the option sir ?It asks which is best……
Well ZBB is particularly useful in public sector organisations where funding is fixed, and there is a need to achieve the best possible service for the available budget.
ZBB allows for a thorough examination of all expenses, ensuring that every cost is justified and that resources are allocated efficiently to meet the needs of the school.Public listed companies in the construction industry may also face different budgeting needs that do not align as closely with the principles of ZBB. They could have more flexibility in adjusting its budget based on revenue generation and market conditions, making ZBB less critical for its planning system.
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