1. The implementation of budgeting in a world class manufacturing environment may be affected by the impact of (i) total quality ethos

(ii) a just-in-time philosophy and

(iii) an activity based focus.

Briey describe the principles incorporated in EACH of (i) to (iii) and discuss ways in which each may result in changes in the way in which budgets are prepared as compared to a traditional incremental budgeting system.

2. New techniques are oen described as contributing to cost reduction, but when cost reduction is necessary it is not obvious that such new approaches are used in preference to more established approaches. Three examples are: new established technique compared approach with (a) benchmarking interrm comparison 03) activity based budgeting zero base budgeting (c) target costing continuous cost improvement You are required, for two of the three newer techniques mentioned above: i) to explain its objectives

ii)to explain its workings

iii)to differentiate it from the related approach identied

v)to explain how it would contribute to a cost reduction programme.