Traditional Culture Encyclopedia - Traditional festivals - What's the difference between zero-based budget and traditional budget?
What's the difference between zero-based budget and traditional budget?
1. The basis of the budget is different. The traditional budget method is based on the previous achievements and determines the current budget amount according to the actual performance of the previous period. The basis of zero-based budget is zero, that is, the budget amount of this period is determined according to the importance of current activities and the amount of funds available for distribution.
2. The objects of budget analysis are different. The traditional budget method focuses on the cost-benefit analysis of new activities, and does not conduct in-depth analysis of activities with the same nature as the previous ones. Zero-based budgets are different. It needs to re-analyze the cost-benefit of all activities in this period.
3. The focus of the budget is different. The traditional budget method mainly controls the increase and decrease of the budget amount, while the zero-based budget not only pays attention to the amount, but also allocates limited funds mainly from the necessity and priority of activities.
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