Zero-based Budgeting, law homework help

Need to do a brief response to the following:

The type of budget that appeals to me is the zero-base budget.
“A zero-base budget requires managers to justify all of
their budgeted expenditures, rather than the more common approach of
only requiring justification for incremental changes to the budget or
the actual results from the preceding year” (Accounting Tools, n.d.).

There are a number of organizations that use this type of budget.
One in particular is Boston Scientific. This is a medical
organization, their mission statement is as follows: “Boston
Scientific is dedicated to transforming lives through innovative
medical solutions that improve the health of patients around the
world” (Boston Scientific, n.d.). This organization is coming up
with new medical equipment that is built to last longer and provide
safe treatment and diagnosis for medical patients.

This type of budget appeals to me because in a sense it can be
flexible. It allows you to focus on your goals and objectives and if
you run into an issue you can still find a different way to solve it.
You don’t have to worry about a set budget that you are stuck
with and end up with issues piling up financially because you
can’t change anything.

The strengths that this budget have in my opinion would be the
managers get to experience more hands on tasks within the company and
this allows them to learn more in depth on what to do and what not to
do financially while running a business. This budget also allows you
to narrow down what items are not very successful. For example, if you
are running a store and see that there are certain radios or
televisions that haven’t been selling at all in the past few
months, there is no point in keeping them on the shelves. There could
be something else in their place that is actually making the store
profit. This budget allowed the manager to see that there was a change needed.

The only weakness that this budget has in my opinion is the amount
of time it takes to implement it. In order for this budget to be
successful for any organization it has to cover every financial aspect
of the organization. The manager would have to go through every single
detail in order for the numbers to be accurate. “This is a
difficult task even once a year, which causes some entities to only
use the procedure once every few years, or when there are significant
changes within the organization” (Accounting Tools, n.d.).

References:

Accounting Tools. (n.d.) Zero-Base Budgeting. Retrieved from http://www.accountingtools.com/zero-based-budgeting

Boston Scientific. (n.d.) Our Mission. Retrieved from http://www.bostonscientific.com/en-US/about-us/who…