Business A-Level
zero based budgeting
What zero based budgeting means in Business A-Level, as defined for AQA.
Definition of zero based budgeting
Check what you remember
Read the wording for your board, then hide it and explain zero based budgeting in your own words. Rough notes are fine. This is a self-check, with no mark or grade.
Reference: AQA
A budget that forces every line to be justified from scratch but takes far longer to prepare.
Topics that use zero based budgeting
- Analysing financial performance (AQA A-Level)
Related terms
- break-even output
- cash flow forecast
- contribution per unit
- contribution squeeze
- credit terms
- data reliability
- forecast risk
- gross profit margin
Using zero based budgeting in the exam
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