ABSTRACT
Budgets are usually drawn up based upon the budgeted or actual figures achieved in the previous year, taking into account any expected changes for the following year. This is known as an incremental budget, in that it changes in increments or small movements from the previous year to allow for inflation or known changes in requirements. For instance, if too much has been allowed in the previous year for training costs, the budget may all be spent even if it was not needed. This is where the use of zero based budgeting (ZBB) may be useful. The key to successful implementation of a budgetary control system is to train the staff involved in the process and to ensure that those charged with the task of managing a budget are involved in the process of formulating the budget in the first place.
