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Zero-Based Budgeting (MBA)

 

As the newly appointed Finance Director, prepare a report addressed to the board of directors of United Consultancy which:
i. Explains the present approach to budgeting adopted in United Consultancy and critically evaluate the advantages and disadvantages of involving consultants in the preparation of future budgets
ii. Critically discusses the format of the operating statement for period 2 Part b
Explain how a spreadsheet could be set up so that a flexed budget and variance calculations could be rapidly produced by inserting only the actual data, assuming that variable costs are thought to vary in line with chargeable consultancy hours.
Part c
Critically discuss the suitability of Zero-Based Budgeting for United Consultancy. Your discussion must clearly explain the advantages and disadvantages of Zero-Based Budgeting and supported by the real-world examples.

Your assignment should be organized as follows:
1. Executive Summary (about 300 words, not include in the word count)
2. Table of contents
3. Introduction
4. Main body
The main body should address the requirements as stated in Part a, b and c above.
5. Conclusion
6. References: you are required to reference / research books and journals, apart
from online sites.

 
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