6 5 3 2 Scenario or Tasks Question-1 Mr. Crehan, a certified public accountant, is in a process of preparing the budget for The company currently uses an incremental approach to budgeting but in the current economic environment, Mr. Crehan would like to investigate other budgeting systems, which may improve both the planning and control processes within the organization, One of Chicago ltd. main competitors Alaska Ltd, has recently introduced Zero based budgeting to their organization. Mr. Crehan would like to develop a better understanding of Zero based budgeting before deciding on whether to recommend to the board of directors the adoption of this budgeting technique You are required to prepare a memorandum for Mr. Crehan outlining the following issues a) The stages involved in Zero based budgeting. 5 Marks b) The problem that Mr. Crehan may face, from current employees, from changing the budgeting system to one based on Zero based budgeting principles. 5 Marks Source - Institute of certified public Accountant in Ireland, Formation 2, management Accounting Question -2