‫Throughout this section, we've touched base on many aspects of zero based budgeting.
‫Let's revisit some of the stats on why zero based budgeting can be beneficial.
‫One.
‫Cost reduction and savings.
‫Many companies that have adopted ZBB report cost savings between ten and twenty-five percent. Two, increase
‫communication.
‫What the ZBB approach, the budget is use as a communication starter, communications surrounding the
‫project's budget or status is a frequent topic at hand.
‫Three.
‫Waste elimination and cost control.
‫What the ZBB approach, many of the activities impacting the budget are reviewed and categorized based
‫on priority or removal.
‫Using this process and the implementation steps allows you to understand what's activities and resources
‫are necessary with ZBB. Four, goal focus.
‫ZBB encourages alignment on company wide goals of a new financial strategy.
‫Let's just drill down to departments and even project levels when evaluating potential expenses.
‫Five.
‫Resource allocation.
‫Once ZBB is complete, resources are more appropriately allocated to projects and departments, which
‫allows funds to be allocated where you need them the most.
‫By now, you've learned about all four corporate budgeting concepts, and I'm quite sure it can be a
‫bit confusing determining which one is best for you.
‫Reviewed the attached budget comparison hand out and take a look at zero based budgeting versus the
‫other three concepts discussed in this course, honing in on the key differentiators.
‫Decide which approach is right for you and your projects.