Document Summary
Zero base budgeting is the latest technique of budgeting and it has an increased use as a managerial tool. This technique was first used in america in 1962. The former president of america, jimmy carter used this technique when he was the governor of gorgia for controlling state expenditure. In zero base budgeting a manager is to justify why he wants to spend. Zbb is a revolutionary concept and is relatively a new management tool for planning and control of activities. It involves people at all levels in the organisation and promotes team spirit. Zbb are much improved than those based upon traditional budgeting. The steps involved in zbb are the following: the objective of budgeting should be determined. When the objective is clear, then efforts will be made to achieve that objective: the extent to which zero base budgeting is to be applied should be decided.
