Disadvantages of Zero Based Budgeting

Disadvantages of Zero Based Budgeting contain the following disadvantages: It necessitates additional paper work and more human resources is wanted which in turn enhance the cost for setting up zero based budgeting system. It is more time overwhelming than traditional budgeting system and as a result it is resisted by a variety of department heads

Zero Based Budgeting (ZBB):

Zero Based Budgeting (ZBB): Learning Objective of the article: Define and explain the term “zero based budgeting” and “incremental budgeting” in managerial accounting. Explain the importance and use of zero based budgeting in business. What are advantages and disadvantages of zero based budgeting? Contents: