BA (Hons) Accounting and Finance HK Advanced Management Accounting ACC09902 Coursework Assignment Latest hand-in date: Friday 1st April 2011 Background information Zero-based budgeting is used in some organisations in preference to incremental budgeting (incremental budgeting is sometimes referred to as traditional budgeting). Zero-based budgeting is mainly used in non-profit organisations and the public sector but it can also be applied to certain activities in profit organisations. Requirements: For one non-profit making or public sector organisation in Hong Kong of your choice, demonstrate how zero-based budgeting could be applied at this organisation. The content of your essay will differ, depending on your choice of organisation. Using a practical example of zero based budgeting based on your chosen organisation, give details of likely ‘decision units’ and ‘decision packages’ and the ranking process to decide which packages are accepted. You should base the practical example on your understanding of likely ‘decision units’ and ‘decision packages’; the only aspect of your example that needs to be based on true facts is your chosen organisation. NB: Your discussion must be linked to the organisation In your discussion, also include: • The advantages that a zero-based budgeting system may offer to the organisation in comparison to an incremental budgeting system. • The problems that could arise at the organisation by the introduction of zero-based budgeting. Additional marks will be awarded for use of literature in your discussion and for presentation. In addition to the main text for this module, Drury (2008), you should refer to academic literature. Citations must be included in your text using (family name, year). The full reference of all citations must be included in a References Section at the end of your discussion. Make sure that you use the Harvard System of referencing. Target length: 1400-1600 words Latest hand-in date: Friday 1st April 2011 Heather Owen and Grahame Steven January 2011 Marking Scheme Marks % Introduction, including background of ZBB and an overview of your chosen organisation. 10 Demonstration of how zero-based budgeting could be applied at your organisation. NB: Your explanation must be linked to the organisation. 45 Discussion of advantages of ZBB compared to incremental (traditional) budgeting. 15 Discussion of problems that could arise by the introduction of ZBB. 10 Conclusion. 5 References. 10 Presentation. 5 Total 100%

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