Corporate Fin Mgt NDLM.PDF

Learning Unit - 3

Budget

Sub-Units

A. Performance Budgeting

B. Zero Base Budgeting

C. Cost-benefit analysis

Sub Unit ‘A’

Performance Budgeting

Objectives :-

At the end of the learning unit, the participants will be able to:

• Understand the meaning, concept and framework of Performance Budgeting


• Design responsibility centers by linking financial inputs to outputs.

Sub Unit ‘B’

Zero Base Budgeting

Objectives:-

At the end of this learning Unit, the participants will be able to:

1. List the steps to be followed for the preparation of Zero Base Budgeting


2. Identify the decision units and the decision packages


3. Identify and rename the redundant expenditure


4. Rationalize expenditure by removing repetitive expenditure items


5. Design decision packages


6. Review the necessity of continuance of on-going expenditure


7. Determine the different levels of funding


8. Use ranking methods for prioritization of decision packages.