Advantages
- Efficient allocation of resources, as it is based on needs and benefits rather than history.
- Drives managers to find cost effective ways to improve operations.
- Detects inflated budgets.
- Increases staff motivation by providing greater initiative and responsibility in decision-making.
- Increases communication and coordination within the organization.
- Identifies and eliminates wasteful and obsolete operations.
- Identifies opportunities for outsourcing.
- Forces cost centers to identify their mission and their relationship to overall goals.
- Helps in identifying areas of wasteful expenditure, and if desired, can also be used for suggesting alternative courses of action
Read more about this topic: Zero-based Budgeting
Famous quotes containing the word advantages:
“For, the advantages which fashion values, are plants which thrive in very confined localities, in a few streets, namely. Out of this precinct, they go for nothing; are of no use in the farm, in the forest, in the market, in war, in the nuptial society, in the literary or scientific circle, at sea, in friendship, in the heaven of thought or virtue.”
—Ralph Waldo Emerson (1803–1882)
“A woman might claim to retain some of the child’s faculties, although very limited and defused, simply because she has not been encouraged to learn methods of thought and develop a disciplined mind. As long as education remains largely induction ignorance will retain these advantages over learning and it is time that women impudently put them to work.”
—Germaine Greer (b. 1939)
“[T]here is no Part of the World where Servants have those Privileges and Advantages as in England: They have no where else such plentiful Diet, large Wages, or indulgent Liberty: There is no place wherein they labour less, and yet where they are so little respectful, more wasteful, more negligent, or where they so frequently change their Masters.”
—Richard Steele (1672–1729)