How does the Zero-Based Budgeting approach affect a company's performance as compared to the Traditional Incremental Budgeting approach?
- The number of companies around the globe that are utilizing budgets to cut their costs is rising, especially in times of crisis. However, there seems to be an abundance of budgeting methods. Two of the most well-known methods are Traditional Incremental Budgeting and Zero-Based Budgeting. These two methods will be compared in this research paper on ‘How does Zero-Based Budgeting affect a company’s performance as compared to Traditional Incremental Budgeting?’. In order to give a satisfactory answer to this question annual reports and figures of Mondelez International, Inc. were utilized as the snack and food company has used both budgeting methods in the past. The research showed that there is a measurable effect on which budgeting method is used by a company. However, the favourable option for one specific company depends on a variety of reasons.
| Author: | Hanna Litke |
|---|---|
| Advisor: | Rütger Conzelmann |
| Document Type: | Bachelor Thesis |
| Language: | English |
| Year of Completion: | 2021 |
| Granting Institution: | Hochschule Furtwangen |
| Date of final exam: | 2021/02/27 |
| Release Date: | 2021/03/02 |
| Tag: | Budgeting methods; Incremental budgeting; Zero-Based budgeting |
| Page Number: | 56 |
| Degree Program: | IBM - International Business Management |
| Functional area: | Finance & Accounting |
| Licence (German): |  Urheberrechtlich geschützt |