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‫Throughout this section, we've touched base on many aspects of zero based budgeting.

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‫Let's revisit some of the stats on why zero based budgeting can be beneficial.

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‫One.

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‫Cost reduction and savings.

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‫Many companies that have adopted ZBB report cost savings between ten and twenty-five percent. Two, increase

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‫communication.

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‫What the ZBB approach, the budget is use as a communication starter, communications surrounding the

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‫project's budget or status is a frequent topic at hand.

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‫Three.

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‫Waste elimination and cost control.

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‫What the ZBB approach, many of the activities impacting the budget are reviewed and categorized based

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‫on priority or removal.

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‫Using this process and the implementation steps allows you to understand what's activities and resources

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‫are necessary with ZBB. Four, goal focus.

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‫ZBB encourages alignment on company wide goals of a new financial strategy.

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‫Let's just drill down to departments and even project levels when evaluating potential expenses.

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‫Five.

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‫Resource allocation.

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‫Once ZBB is complete, resources are more appropriately allocated to projects and departments, which

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‫allows funds to be allocated where you need them the most.

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‫By now, you've learned about all four corporate budgeting concepts, and I'm quite sure it can be a

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‫bit confusing determining which one is best for you.

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‫Reviewed the attached budget comparison hand out and take a look at zero based budgeting versus the

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‫other three concepts discussed in this course, honing in on the key differentiators.

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‫Decide which approach is right for you and your projects.