2.1 Read the case study and answer questions 2.1.1 2.1.5

Case Study: Implementing Zero-Based Budgeting in XYZ Retailers, South Africa Background: XYZ Retailers, a leading South African retail company, operates in a competitive market with evolving consumer preferences and cost pressures. To adapt to this dynamic environment, the management is considering the adoption of Zero-Based Budgeting (ZBB) as a strategic financial approach. XYZ Retailers currently operates 50 stores across South Africa, offering a wide range of products in various categories including apparel, electronics, home goods, and groceries. In the last fiscal year, the company recorded a total revenue of ZAR 500 million, with an operating expense of ZAR 350 million.

2.1.1 Explain what Zero-Based Budgeting (ZBB) is and how it differs from traditional budgeting. (4) 2.1.2 Advise XYZ retailers by listing and explaining the 6 key fundamentals essential for a successful implementation of Zero-Based Budgeting (ZBB) (6) 2.1.3 Provide 4 advantages and 6 disadvantages of implementing Zero-Based Budgeting in the context of XYZ Retailers (10) 2.1.4 Describe how XYZ Retailers can implement Zero-Based Budgeting effectively. (5) 2.1.5 How does a master budget differ from Zero-Based Budgeting? (4)