Quote:
Originally Posted by BillieTheGirl
Why is the practice of zero based budgeting not made a standard practice?
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Because it very seldom works.
Having spent a good portion of my career developing and managing very large expense & capital budgets...we went through a short phase of
'zero-based budgeting.'
Even making the huge effort of breaking down individual functions, the documented hours for each function, applying actual hourly (including burden & benefits)/material/equipment costs and using hard previous years data to prove the quantity of those functions I identified...it came down to
"our profit goal for next year will not allow the budget you're requesting."
Quote:
Originally Posted by BillieTheGirl
I gurantee a a zero based budget approach, line item by line item will yield substantial opportunities for reductions.
If it has never been done, I GUARANTEE THERE ARE REDUCTION opportunities.
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Of course there are opportunities to decrease spending.
It all boils down to...
whose Ox is getting gored.
What I think is wasteful and superfluous, will not be what you think is...so who gets to make that choice?
Especially in the public/political arena, so compromises are made and everyone gets a little...and loses a lot.
If I were Governor of a state and was given full, final and autonomous authority over the budget...I guarantee I could quickly balance it.
I can also guarantee that given you are such a simpleton, you would be squealing and screeching...about what I cut.
Oh well, I can only fantasize of seeing your bloated & enraged face...when that occurred.