What are the reasons for the failure of zero based budgeting in the United States to be specific

Zero-based budgeting:

Regardless of past budget items and the level of revenue and expenditure, a budget drawn up on the basis of zero specifically refers to a scientific and modern budgeting method that is not affected by the previous budget arrangements, proceeds from actual needs, examines the contents of various expenses in the budget year and the expenditure standards one by one, and draws up the budget on the basis of comprehensive balance in light of the financial situation.

1. Zero-based budgeting is relative to rolling budgeting.

2. Zero-based budgeting is a financial method corresponding to flat management, especially suitable for financial management based on the business unit system that is consistent with the task center and cost center. Up to now, zero-based budgeting has gone far beyond the scope of financial management, and has evolved into an unconventional management concept, especially in the field of enterprise problem solving, which is an effective modern management model.

3. The basic principles of zero-based budgeting implementation are:

a. Determine the task center and cost, and divide the grassroots budget units;

b. Propose a plan for the operational activities of the grass-roots budget units, explaining the purpose of each activity plan and the expenses that need to be spent;

c. The grass-roots budget units shall make a specific analysis of their own business activities and conscientiously put forward a package of "business plans";

d. Conduct a "cost-benefit" analysis of each operational activity plan, weigh the benefits and disadvantages, prioritize them and classify them;

According to the objective needs of the operation and the actual possibility of funds in a certain period of time, it is determined that the cost items included in the budget can reach several levels, and the cost items that have been determined to be included in the budget are processed and summarized to form a comprehensive cost budget.

Fourth, the benefits of implementing zero-based budgeting are:

a. Rational and effective allocation of resources;

b. Contribute to internal communication and coordination, and motivate all departments to participate in the budget;

c. The goal is clear, and the priority of the plan can be distinguished;

d. It helps to improve the input-output awareness of managers;

e. It is especially suitable for project tasks with high uncertainty and difficult to identify output, quantify the controllability of its cost, and overcome the ineffective waste of funds.

Zero-based budgeting is relative to rolling budgeting.

Zero-based budgeting refers to the fundamental study and analysis of whether each budget has the necessity of expenditure and the size of the expenditure amount when preparing the budget, without considering the previous implementation situation. This budget, which is not based on historical tinkering, re-examines the relevance and effectiveness of each activity to the achievement of organizational objectives at the beginning of the year and re-prioritizes management activities on the basis of a cost-benefit analysis, on the basis of which the allocation of funds and other resources is decided.

China's annual financial budget is zero-based budgeting, which is also the most used method by enterprises.

Rolling budget, also known as continuous budget or perpetual budget, is a budget preparation method that prepares the current year's budget on the basis of the previous year's performance, separates the budget period from the fiscal year, and continuously extends the supplementary budget with the implementation of the budget, and rolls backward period by period, so that the budget period has always been a budget preparation method for a fixed period.

The "zero-based budget" proposed by the United States at the end of the 70s, as the name suggests, is a budget with a zero expenditure base, that is, it no longer considers departments, but prepares budgets according to what it wants to do, that is, "events".

For example, if you plan to do 100 things this year, you will start with your own budget. If a department has three things to do, it gets a budget for the sum of the three things, and if another department has nothing, the base is zero and it can only be closed and disbanded.

In practice, there are two basic models of zero-based budgeting:

The first is zero-based budgeting in the full sense of the word;

The second is "improved zero-based budgeting", that is, only the part of the office expenses is implemented zero-based budgeting. The capitation fee is determined on a staffing and head-to-head basis.

China's current zero-based budget refers to the former for engineering projects and the latter for administrative institutions. The disadvantages of zero-based budgeting are: the preparation process is too complex, the workload is too large, and the preparation time is too long; Sometimes, there is the absurdity of "drilling wells in the budget, filling wells in the budget", and the total effect is zero.

However, improved zero-based budgeting can hardly be said to improve spending efficiency. This is because, as long as the part of the public budget that "supports people" is still retained, no matter what kind of budget is adopted, there will always be the possibility of personnel expansion for administrative and public institutions.

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Zero-base budgeting (ZBB) method is a kind of 20th century created by Texas Instruments in the United States, and has been used as one of the methods of budget preparation in Western countries. Zero-based budgeting is mainly used for the budget of various expenses, and its main feature is that the budget of various expenses is not affected by the previous cost level at all, but takes zero as the starting point, according to the needs of the actual operation of the enterprise during the budget period, and according to the importance of the expenditure to prepare the budget.

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Zero-based budgeting refers to a method in which the cost budget is prepared without considering the expense items or expenses incurred in the previous accounting period, but takes all the budget expenditures as zero as the starting point, and considers the content of each expense in the budget period and whether the expenditure standards are reasonable one by one from the actual needs and possibilities, and prepares the cost budget on the basis of comprehensive balance. Peter A. Phil of Texas InstrumentsPyhrr proposed the concept of "zero-based budgeting" (abbreviated as ZBB) in 1970.

Sectors in the U.S., particularly Georgia, were the first to adopt ZBB and have seen results. Subsequently, business organizations have adopted accordingly.

The idea of zero-based budgeting originated in 1952, when the American Wayne Lewis put forward a new argument in budgeting in his article "A New Interpretation of Budgeting Theory", that is, when preparing a public expenditure budget, according to what criteria or methods are used to determine what different results may be produced by allocating a certain amount of funds to sector A instead of sector B, and allocating to sector A but not to sector B. He believed that the problem could only be solved through "non-traditional methods of preparation". And this "non-traditional method" is what came into being zero-based budgeting.

In the 60s of the 20th century, the U.S. Department of Agriculture** tried to experiment with zero-based budgeting in its sector, but it was ultimately unsuccessful. In 1970, Texas Instruments' Personnel Research Division successfully utilized a zero-based budgeting approach in departmental budgeting, and since then all of the company's departments have successfully adopted zero-based budgeting in their budgeting. Subsequently, zero-based budgeting was first widely promoted in the private sector in the United States.

Soon after, the U.S. federal government decided to use zero-based budgeting in the public sector, and Georgia became the first U.S. state to adopt zero-based budgeting. In 1979, Carter was elected to the United States**, and the federal ** fully implemented the zero-based budgeting method of public sector budgeting, and many states** followed suit, and the zero-based budgeting method suddenly spread rapidly in the United States. Since then, it has been adopted by some other countries around the world.

Zero-based budgeting declined in the late 80s of the 20th century, and in 1993, the U.S. Congress enacted the Performance and Results Act, which began to fully adopt a new approach to performance-based budgeting.

Zero-base budgeting refers to a method of preparing a cost budget based on a comprehensive balance that does not consider the expense items or expense amounts incurred in the previous accounting period, but takes all budget expenditures as the starting point, and proceeds from the actual needs and possibilities.

The zero-based budgeting method is very different from the traditional adjustment budgeting method and has the following three characteristics:

1.The basis of the budget is different.

The budget adjustment method is based on the results of the previous period, and the budget amount for the current period is determined based on the actual performance adjustment of the previous period. Zero-based budgeting is based on zero, and the amount of the budget for the current period is determined based on the importance of economic activity in the current period and the amount of funds available for allocation.

2 The objects of budgeting analysis are different.

Unlike the zero-based budgeting approach, which focuses on the cost-benefit analysis of newly added business activities, while the same business activities do not do an analytical study, the zero-based budgeting approach requires a cost-benefit analysis of all economic activities during the budget period.

3 Budgets are differently focused.

The budget adjustment method mainly focuses on the amount of money, and focuses on controlling the increase or decrease of the budget amount from a monetary perspective. In addition to focusing on the amount of money, zero-based budgeting mainly allocates limited funds based on the necessity and importance of business activities.

Hello classmates, I'm glad to answer for you!

Zero-base budgeting refers to a method of preparing a cost budget based on a comprehensive balance that does not consider the expense items or expense amounts incurred in the previous accounting period, but takes all budget expenditures as the starting point, and proceeds from the actual needs and possibilities.

Gordon wishes you a happy life!

Zero-base budgeting (ZBB), also known as zero-base budgeting, its full name is "zero-based planning and budgeting method", referred to as zero-based budgeting, which was originally developed by Texas Instruments, which refers to the preparation of the budget for all budget expenditures, are based on zero, regardless of the past situation, fundamentally study and analyze whether each budget has the need to spend and the size of the amount of expenditure. This budget, which is not based on historical tinkering, re-examines the relevance and effectiveness of each activity to the achievement of organizational objectives at the beginning of the year and re-prioritizes management activities on the basis of a cost-benefit analysis, on the basis of which the allocation of funds and other resources is decided.

Zero-based budgeting method: Zero-based budgeting was proposed by Pitt in the United States in the 60s of the 20th century.

Incremental budgeting is based on the cost level of the base period, while zero-based budgeting is starting from scratch.

Rational and efficient allocation of resources.

It is helpful for communication and coordination within the enterprise, and motivates the enthusiasm and initiative of all grassroots units to participate in the budget.

The goal is clear, and the priority of the plan can be distinguished.

It helps to improve the input-output awareness of managers.

It is especially suitable for service sectors whose output is difficult to identify, and to overcome the shortcomings of wasting funds.

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The zero-based budgeting method is a method of preparing a cost budget on the basis of comprehensive balance, without considering the cost items or amounts incurred in the previous accounting period, but taking zero as the starting point, and considering whether the content and expenditure standards of each cost in the budget period are reasonable from the actual needs. The advantages of zero-based budgeting are mainly manifested in: (1) it is not limited by existing cost items; (2) not bound by the current budget; (3) Be able to mobilize the enthusiasm of all parties to save costs; (4) It is conducive to promoting the grassroots units to make careful calculations and use funds rationally.

So the options are all correct.

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(1) Resource allocation can be carried out reasonably and effectively;

2) It can give full play to the enthusiasm and creativity of managers at all levels.

3) It is especially suitable for the preparation and control of budgets of service departments whose outputs are difficult to identify.

How to distinguish between incremental budgeting and zero-based budgeting for intermediate accountants?

First, the nature of the method is different.

1. Zero-based budget: It is a scientific and modern budgeting method that does not consider the past budget items and the level of revenue and expenditure, and is based on zero, specifically referring to a scientific and modern budgeting method that is not affected by the previous budget arrangement, and proceeds from the actual needs of all the items in the budget year and its expenditure standards, and combines the financial situation to prepare the budget on the basis of comprehensive balance.

Second, the shortcomings of the method are different.

1. Zero-based budgeting: Since all work starts from "zero", the zero-based budgeting method is used to prepare a large workload and relatively high cost; When stratifying, sequencing and allocating funds, there may be subjective influences, which can easily cause contradictions between departments;

2. Incremental budget: When the situation changes in the budget period, the budget amount will be disturbed by unreasonable factors in the base period, which may lead to the budget being really inaccurate, which is not conducive to mobilizing the enthusiasm of various departments to achieve the budget target.

Zero-based budgeting is sorted according to the importance of the budget, and the budget items to be done are determined in combination with the budget amount obtained. Incremental budgets are new additions to the old budget, last year's budget may not be needed or high priority this year, in the case of limited budget, zero budget can remove these, and incremental budget may be high priority, the new budget is not included in the plan, or because of the limited budget, but the actual need is retained. Therefore, it is generally accepted that zero-based budgeting is better than incremental budgeting.

Zero-based budgeting is a budgeting approach that means that all costs must be re-evaluated for each new period. Zero-based budgeting starts with "zero-based" and requires an analysis of the needs and costs of each department in the enterprise. Whether such a budget is higher or lower than the previous budget, it should be budgeted according to future needs.

Zero-based budgeting implements high-level strategic objectives in the budgeting process through piloting in specific departments within the enterprise. At this point, it should be reduced to a cost, and then measured based on previous results and current**.

Incremental budgeting. This type of budget means that the new budget is prepared on the basis of the budget of the previous period or the actual performance, and the corresponding content is added to the basis. The allocation of resources is based on the allocation of resources from previous periods.

This approach does not take into account changes in specific circumstances. Such budgets focus on financial results rather than quantitative performance measurements, and are not linked to employee performance.