Zero Based Budgeting - 89376

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  • From: Business, Finance
  • Posted on: Thu 26 Mar, 2015
  • Request id: # 76762
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Zero Based Budgeting is a budgeting technique that is based on the assumption that operation would start from zero capital and everything must be planned considering starting afresh. This method is complementary and linkage to the existing planning, budgeting and review processes. Every year this process is repeated to assess and arrive at the realistic costs and budgeting possibilities of cutting costs. This process is very important as it helps in in identifying better and more efficient ways of utilizing the available resources. The importance of Zero based budgeting increases significantly in public sector as most of expenses in normal conditions cannot be cut as these are expected to have negative impact on overall society. But still public sector organization needs to decrease costs and zero based budgeting helps in this.

Windsor Memorial Hospital is public hospital and is being funded b