Information regarding many approaches to budgeting can be found on the Web. The following activity investigates the merits of “zero-based” budgeting, as discussed by Michael LaFaive, Director of Financial Policy of the Mackinac Center for Public Policy.

Address: www.mackinac.org/article.aspx?ID5928, or go to www.wiley.com/college/

kimmel Instructions Read the article at the website and answer the following questions.

(a) How does zero-based budgeting differ from standard budgeting procedures?

(b) What are some potential advantages of zero-based budgeting?

(c) What are some potential disadvantages of zero-based budgeting?

(d) How often do departments in Oklahoma undergo zero-based budgeting?

COMMUNICATION ACTIVITY