Advanced You are the management accountant of a group of companies and your managing director has asked you to explore the possibilities of introducing a zero-base budgeting system experimentally in one of the operating companies in place of its existing orthodox system. You are required to prepare notes for a paper for submission to the board that sets out:

(a) how zero-base budgeting would work within the company chosen;

(b) what advantages it might offer over the exist¬ ing system; (5 marks)

(c) what problems might be faced in introducing a zero-base budgeting scheme; (5 marks)

(d) the features you would look for in selecting the operating company for the introduction in order to obtain the most beneficial results from the experiment. (4 marks)
(Total 20 marks)
CIMA P3 Management Accounting