ERIC Number: ED172407
Record Type: Non-Journal
Publication Date: 1977-May
Reference Count: N/A
The Zero-Base Budget: A New Management Tool. Information Series, Volume 6, Number 4. Bulletin No. 7430.
Buchmiller, Archie A.
All indicators appear to point to a continuing and increased public interest in zero-based budgeting (ZBB). Despite its present popularity, ZBB is not new. The theory has been around for more than a decade and it draws heavily on existing systems, particularly on planning, programming, and budgeting systems. ZBB has two phases. The first is the planning phase, which includes four elements--information systems, program structure, evaluations systems, and costing systems. The second phase is the analysis of decision packages. The decision packages are presented to successively higher management levels. These documents usually contain a statement of need and related performance objectives, and the identification of current costs for activities to be carried out. The inclusion of a number of different decision alternatives gives top management choices between different levels of benefits and costs. Because of its complexity, ZBB seems most suitable for use every three to five years, rather than every year. Further, it seems most useful for discretionary programs rather than in areas with fixed costs. Business and government organizations that have used ZBB are not in agreement as to its advantages compared to traditional systems. (Author/IRT)
Publication Type: Information Analyses
Education Level: N/A
Authoring Institution: Wisconsin State Dept. of Public Instruction, Madison. Div. for Management and Planning Services.