Advanced The chief executive of your organization has recently seen a reference to zero-base budgeting. He has asked for more details of the technique.

You are required to prepare a report for him explaining:

(a) what zero-base budgeting is and to which areas it can best be applied;

(b) what advantages the technique has over tradi¬ tional type budgeting systems; and

(c) how the organization might introduce such a technique. (20 marks)

CIMA P3 Management Accounting