Zero Based Budgeting and Activity Based Costing

Are you a business owner and are looking to introduce modern forecasting techniques into your management system? Do you head up a department struggling to stay within its budgetary limits? Various organisations have shifted to different budgeting and costing methods, resulting in more accurate forecasting and better results. Manish Gupta, your instructor, enables you to understand activity-based costing and zero-based budgeting to help you and your organisation achieve your desired results. We begin the course by explaining zero-based budgeting. Then we trace the differences between zero-based budgeting and traditional forecasting methods. We will also discuss common practical examples of zero-based budgeting in different industries and the key advantages and disadvantages of implementing this system.

Then we will explore the critical steps involved in implementing zero-based budgeting in different scenarios. We demonstrate how to transition from a traditional budgeting system to a zero-based budgeting system. When you decide to implement a new system, the management in any organisation can offer resistance. Cultural and strategic relations also need to be considered to ensure that you carry out the transition smoothly. For example, are the products of your division not reflecting the actual costs incurred in manufacturing them? A method of costing called ‘activity-based costing’ might be the solution you need. 

Activity-based costing (ABC) enhances the reliability of cost data, producing nearly actual costs and better classifying the expenses incurred by the company during its production process. We compare this costing method to function-based costing in traditional costing approaches. We investigate how to design an efficient activity-based costing system that produces accurate results. The activity-based costing system involves several steps. We explain each step using examples. Every organisation desires to make accurate forecasts to effect the efficient allocation of costs. Over the years, various techniques have provided this. Activity-based costing and zero-based budgeting are among those techniques. This online course guides you to understand the rudimentary budgeting concepts and assists in making the transition from traditional methods to new ones. So do not waste any more time. Enrol now and achieve the desired results that you have always dreamed about!