The Strengths And Weaknesses Of The Zero-Based Budgeting System: Future Agenda

Budgets represent the formal quantitative expression of the objectives that the organization administration proposes to achieve in a period, with the adoption of the necessary strategies to achieve them. The fundamental problem with using these methods that are based on statistics from the past, to make predictions and preventions for the future do not reflect the changing reality of the new business environment. In this sense, all those methods that try to apply decision-making based on past behaviors are outdated, since erroneous results are reached by not collecting current changes in the organization. Starting from this mutability, the tools that provide fuzzy logic are used in the construction of a zero-based budget, where problems reached by past data are eliminated, and the organization's objectives are projected, trapping uncertainty in order to achieve the objectives. This paper concludes strengths and weakness of implementing zero-based budgeting, also future research agenda.
Keywords: Zero-basedd budgeting, strengths, weakness, future agenda