Understanding the common criticisms of Zero-Based Budgeting (ZBB)

Zero Based Budgeting has been experiencing renewed interest due to some high profile applications in recent years.

Whether you are already engaging in some form of ZBB, are considering it, or are simply wondering about it, you probably have some concerns about the criticisms/limitations being discussed.

This video goes on to explain the three most common criticisms of zero based budgeting:

1. It is time consuming
2. It only focuses on reducing expenditures and not on other improvement opportunities
3. Cutting costs to the bone can sacrifice the future of the business for short term gains.

By the nature of being primarily a budgeting tool that is often used to identify opportunities, there are some limitations to the gains you can achieve from ZBB.

If you think that there may be an even better way to find opportunities visit: