Corporate Fin Mgt NDLM.PDF

2.10 With reference to the visual aid faculty may explain the:

ó Meaning of Zero Base Budgeting and its historical background

ó Scope of application

ó Methodology for preparation of Zero Base Budgeting

ó Identification and elimination of duplicate/multiple items of expenditure

ó Alternative strategies for cost reduction.

ó Examples of successful applications, as well as failures.

Visual Aid - 23: Decision Package

Decision Package

ó Name

ó Account

ó Duration

ó Functions

ó Objectives and Targets

ó Events and activities.

ó Relevance and Questions

ó Measurement

ó Funding level

ó Methods

2.11 Faculty to explain the designing of decision package with reference to the

reading materials.

2.12 This will be followed by activity described for Group 2 in the section of Group
Activities in Learning Unit 3.

3. Cost Benefit Analysis

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

ÿ Identify and value the items of costs and benefits.

ÿ Undertake compensation analysis

ÿ Comprehensively use the Externalities Theory in respect of social goods.

ÿ Identify and use Social Rate of Discount for cost benefit analysis.

ÿ Undertake Risk and Uncertainty Analysis for decisions relating to social

policy.

ÿ Do cost-benefit analysis with reference to given cases.