In 2020, JMT Limited used a zero-based budget (ZBB). The finance director believes that its budgeting...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
In 2020, JMT Limited used a zero-based budget (ZBB). The finance director believes that its budgeting process is now a "well-oiled machine" and does not need to do a ZBB again in 2021. Rather, to save time and other resources related to ZBB, the finance director highlighted to the board that she will consider taking the 2020 results as the basis for the 2021 budget. For 2021 budgets, she will adjust the 2020 results and allow for inflation at the producer price inflation (PPI) (or any such inflation adjustment the board allows) and planned growth. Required: a. What budgeting approach is the finance director proposing? b. Advise the board on the conditions that may improve the success of the finance director's proposed budgeting approach. In 2020, JMT Limited used a zero-based budget (ZBB). The finance director believes that its budgeting process is now a "well-oiled machine" and does not need to do a ZBB again in 2021. Rather, to save time and other resources related to ZBB, the finance director highlighted to the board that she will consider taking the 2020 results as the basis for the 2021 budget. For 2021 budgets, she will adjust the 2020 results and allow for inflation at the producer price inflation (PPI) (or any such inflation adjustment the board allows) and planned growth. Required: a. What budgeting approach is the finance director proposing? b. Advise the board on the conditions that may improve the success of the finance director's proposed budgeting approach.
Expert Answer:
Answer rating: 100% (QA)
aThe Finance Director proposing ZBB Zero Base Budgeting As mentioned in this budget the ... View the full answer
Posted Date:
Students also viewed these general management questions
-
A trader in the futures market does not need to hold his or her position open until the delivey) month. Suppose that Selina has an open short position in five CBOT July corn futures contracts. What...
-
A trader in the futures market does not need to hold his or her position open until the delivery month. Suppose that Selina has an open short position in five CBOT July corn futures contracts. What...
-
A zero based budget 1 -Is best for a company whose business is constantly changing 2 - Is best for a business whose business is not constantly changing 3 - Assumes you start the budgeting process...
-
ABC Ltd prepares its financial statements to 31 October each year. Its trial balance at 31 October 2019 was as follows: Premises-cost Manufacturing plant-cost Office equipment-cost Accumulated...
-
Refer to Fig. 7.6 on page 295. a. Why are the four graphs in Fig. 7.6(a) all centered at the same place? b. Why does the spread of the graphs diminish with increasing sample size? How does this...
-
Martin Kittson admired his wifes success at selling scarves at local craft shows so he decided to make two types of plant stands to sell at the shows. Martin makes twig stands out of downed wood from...
-
Suppose over the period \([0, T]\) a certain stock pays a dividend whose present value at interest rate \(r\) is \(D\). Show that the put-call parity relation for European options at \(t=0\),...
-
Recall exercise 3 from Chapter 4 in which a country imposes an import fee on the crude oil it imports. Imagine that all the crude oil imports to the country are made by ships owned by its nationals....
-
Cullumber Manufacturing incurs $ 8 0 , 0 0 0 of direct labour costs. Supporting records show that the assembly department used $ 4 6 , 7 0 0 of the direct labour and the finishing department used the...
-
1. Anton and Beatrice are brother and sister in their twenties, living in the family home which, together with its contents, is owned by their father, Robert. Since Anton and Beatrice can remember,...
-
A firm currently makes a component, and requires 25,000 of them for the coming year's production. Another supplier has offered the part at a delivered price of $4.50 per unit. It would cost $2,500 to...
-
Describe the main features of internal check suitable for a bank.
-
Describe the procedure for audit of (a) Departmental undertakings and (b) Statutory corporations.
-
What are the registers to be maintained by an insurance company?
-
State how an auditor should outline the programme suitable for a share transfer audit.
-
How an auditor of a bank is appointed?
-
Which Economic factors affect organizations and managerial decisions? Provide an example.
-
Explain briefly what is meant by electronic data interchange (EDI). How does EDI affect a companys audit trail?
-
The following are summaries of the cash book and bank accounts of J. Duncan who does not keep his books using the double entry system. You are required to: (a) Calculate the value of J. Duncan's...
-
Read the following and answer the questions below. On 31 December 2015 the bank column of C. Tench's cash book showed a debit balance of 1,500. The monthly bank statement written up to 31 December...
-
The bank columns in the cash book for June 2016 and the bank statement for that month for D. Hogan are as follows: You are required to: () Write the cash book up to date to take the above into...
Study smarter with the SolutionInn App