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Evaluating Planning Programming Budgeting ( Zbb )

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With Zero Based Budgeting (ZBB) the budget starts at 0 (Financial Web, 2015). The department needs to justify their expenditures for the current year, and the allocation of funds is determined by the merits of their policy rather than the budget that was allotted the previous year (Financial Web, 2015). There are pros and cons with ZBB. ZBB assures effective allocation of funds, avoids unnecessary expenditures, utilizes cost effective methods, and removes ineffective and counterproductive activities (Financial Web, 2015). However, it takes longer to prepare, the expense of the budget is increased, many decision packages may be needed depending on the size of the organization, it requires commitment, everything must be justified, and all those involved must be educated in how to use ZBB (Financial Web, 2015). The best way to describe Planning-Programming Budgeting (PPB) is by examining its individual components. Planning refers to the production and potential as well as considering alternatives (Feltes, 2003). Programming refers to the manpower, material, and facilities necessary for accomplishing a program. PPB has five distinguishing features. First is program accounting, which involves organizing information based on their purpose or their task (Feltes, 2003). This is different from financial accounting, which is which focuses more on the object or class of expenditure (Feltes, 2003). Second in multi year costing, which involves the building of budgetary requests for
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