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Zero based budgeting

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA PM Exams › Zero based budgeting

  • This topic has 2 replies, 2 voices, and was last updated 10 years ago by Dasha.
Viewing 3 posts - 1 through 3 (of 3 total)
  • Author
    Posts
  • November 16, 2014 at 8:56 am #210336
    Dasha
    Member
    • Topics: 1
    • Replies: 2
    • ☆

    Good morning!
    I’d like to ask about zero based budgeting question from Speciment exam.

    Two statements
    1) Employees will focus on eliminating wasteful expenditure
    2) Short-term benefits could be emphasised over long-term benefits

    The asnwer is that both statements are true.
    The first one is ok, but why the second one is true? Why short-term benefits could be emphasised if zero-based budgets are mostly used for large long-term projects?

    November 16, 2014 at 10:02 am #210390
    John Moffat
    Keymaster
    • Topics: 57
    • Replies: 54700
    • ☆☆☆☆☆

    It should not be true for the reason you state, however it ‘could’ be true because it is used as part of the short-term budgeting exercise and long-term effects may not be given as much attention as they should.

    November 22, 2014 at 3:32 pm #212221
    Dasha
    Member
    • Topics: 1
    • Replies: 2
    • ☆

    ok, I see, thank you!

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