The Importance Of The Zero-Base Budget

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Introduction – Title Page
Higher education organizations are looking for ways to provide for their programs (Cohen, 1993), and higher education organizations must evaluate their budgets to determine what costs can be eliminated and where funds should be used (Palmer, 2014). The zero-base budget is one process that higher education organizations can use. The zero-base budget starts at zero and determines what programs and services should be kept (Palmer, 2014). This presentation will address the function, the process, the justification, the advantages, and the limitations of the zero-base budget, and how the zero-base budget handles unforeseen contingencies. (93 words)

A budget is a document that is used for planning financial information for activities that will occur in the future (Achim, 2014). For higher education organizations, budgets explain and manage the funds that are provided by stakeholders and show how funds are used to support the organizations’ missions (Palmer, 2014). Different budget strategies provide information on how funding assists the organization’s goals (Palmer, 2014). The budget process entails the budget policy, the limiting factor, budgets for revenue, creating the first draft of the budget, the negotiation process of the budget, the review of the budget, the final approval of the budget, and the final budget review (Achim, 2014). (108 words)

Describe the Function of the Zero-Base Budget and the Process
Zero-base budget requires that the
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