Zero Based Budgeting (ZBB)
Zero Based Budgeting is a reverse approach of traditional planning and decision making with respect to budgeting. In Zero Based Budgeting all managers are required to justify all budgeted expenses, not just the changes in the budget of the previous year. The baseline in Zero Based Budgeting is not last year’s budget but “zero”.
Direct Costing
Direct Costing is a practical tool in which the cost calculation is used for making decisions aimed at production and sales planning. Read more.
Absorption Costing
Absorption Costing is a cost calculation method that represents the information of all expenses that are associated with the production process of a product or service.
Activity Based Costing (ABC)
Unlike traditional cost price systems, activity based costing does establish a causal link between the cost drivers and indirect costs. By passing on this insight to the responsible cost drivers, a transparent and cost-conscious conduct is stimulated.
Robin Cooper
Robin Cooper is professor of financial management in the area of designing and practising of costing systems. He is the founder of financial systems like the M-approach and Activity Based…