(a)corporate planning and budgeting are complementary, rather than the former super-seding the latter.’
Compare the aims and main features of corporate planning’ and ‘budgeting’ systems.
(b) The aims of zero-base budgeting have been described recently in the following terms: `Zero-base budgeting is a general management tool that can provide a systematic way to evaluate all operations and programmes; a means of establishing a working structure to recognise priorities and performance measures for current and future plans; in essence, a methodology for the continual redirection of resources into the highest priority programmes, and to explicitly identify tradeoffs among long-term growth, current operations, and profit needs.’
Explain how a system of zero-base budgeting works, and to assess its likely success in attaining the aims set out above.
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