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Article evaluation: Zero-based budgeting
text is added The opening summary is alright. It correctly identifies what zero based budgeting is and how it works. However, the comment about Carly Fiorina offering zero based budgeting in her political campaign is misplaced. The advantages and disadvantages set up is a good way to explain it, but there are no sources to back up those claims. There is no separation between the explanation of the public and private sector of the use of zero based budgeting. The definition of zero based budgeting is right in the middle of all of the information about how it is used in the real world when it should be at the beginning of the article. Again, there is no source for the definition so this could just be an off the brain idea instead of an actual definition. The sources on this whole Wikipedia page is from the 1990’s none are very current other than the sentence about Carly Fiorina. The sources are also in the same time March 1997. This page also has large pieces of quotes from the source instead of paraphrasing material from the source itself. This article is neutral but the sources needs to be updated and the format of the whole page needs to be redone. The articles that the user used can’t be linked to because they are so old they aren’t online. This material is really out of date and needs to be updated with more current uses and definition of zero based budgeting. The whole page needs to be placed in a more logical order. The citations need to be updated, and article needs to cut down on large quotations from the cites.

Annotated bibliography
http://www.gfoa.org/sites/default/files/GFOAZeroBasedBudgeting.pdf Kavanagh, S. (2011). Zero-Base Budgeting. Retrieved October 26, 2016, from http://www.gfoa.org/sites/default/files/GFOAZeroBasedBudgeting.pdf The website is a financial website that provides articles that create a benchmark that shows how economic strategies create better economic success. The point that this article is to explain that zero based budgeting isn’t just for an economic fallout. The article gives an example of a company that has been using zero based budgeting to help work the economic success. This article is important to the concrete understanding of zero based budgeting because it explains that you can use this type of budgeting with a successful economic period, and not just for crisis. The article explains how the use of this budgeting can help companies utilize this tool of economic strategy to create a surplus. This helps those who need a complete definition of this type of budgeting and how it can help and continue success from an economic solution. This creates a better use for the budgeting process.

http://www.mckinsey.com/business-functions/strategy-and-corporate-finance/our-insights/five-myths-and-realities-about-zero-based-budgeting Callaghan, S., Hawke, K., & Mignerey, C. (2014, October). Five myths (and realities) about zero-based budgeting ... Retrieved October 25, 2016, from http://www.mckinsey.com/business-functions/strategy-and-corporate-finance/our-insights/five-myths-and-realities-about-zero-based-budgeting McKinsey & Company is a global management consulting firm. They work in the private and public sector to come to clear solutions in areas. They have been helping create solutions for all sectors of business. The article explains what zero based budgeting actually does in a system, instead of what perceived ideas that were already created. They use examples of companies using zero based budgeting to help them and how this can contradict what individuals have thought for a long time. This source is important to understand what others might originally think about zero based budgeting. It will also help create a concrete understanding of what zero based budgeting is for instead of what individuals already think it is for. The article also explains where and how Zero based Budgeting can be used to work effectively within a sector of business. Along with the definition and basic understand of how business budgeting works the reader can create a better understanding of how this type of budgeting could help or hurt their company.

http://www.accountingtools.com/zero-based-budgeting By forcing the development of these alternatives, the process makes managers consider other ways to run the business. (n.d.). Zero Based Budgeting - AccountingTools. Retrieved October 26, 2016, from http://www.accountingtools.com/zero-based-budgeting Accounting tools is a website dedicated to explaining accounting tools and how they work in governments, businesses, and non-for profits. The whole website is written by Steven Bragg who has written 100's of accounting and CPA courses and books. The article explains what zero based budgeting is and how it will work in the real world. Most this article is about the advantages and disadvantages of zero based budgeting. Each one of the advantages and disadvantages have a complete explanation for how and why each one works. This article creates a deeper understanding about what zero based budgeting can do for businesses and individual set ups. This article helps the Wikipedia article create a deeper understand of what Zero Based Budgeting is and how it will work in a system. This type of source helps those investigating zero based budgeting create a concrete idea of what this type of budgeting can do.

http://www.wsj.com/articles/meet-the-father-of-zero-based-budgeting-1427415074 Kesmodel, D. (2015, May 26). Meet the Father of Zero-Based Budgeting. Retrieved October 26, 2016, from http://www.wsj.com/articles/meet-the-father-of-zero-based-budgeting-1427415074 The Wall Street Journal is a largely published and known newspaper that has internet publishing as well as actual paper printing. This article digs into where zero based budgeting came from and who created the idea of zero based budgeting. This type of budgeting was originally created to help shave costs. This explains the misconception that zero based budgeting is only for shaving costs and not for the other valuable uses. The article also explains that the zero based budgeting tool can be used to fix economic times and again explains why so many misconceptions have been created by this economic technology. It also explores that this type of budgeting can help company’s always look at each section in the budget and better understand where funding needs to be and how to better funnel money in and out of the system. This article also explains how politicians wanted to apply this type of budgeting in an executive position.

http://ww2.cfo.com/budgeting/2015/08/zero-based-budgeting-no-longer-just-crisis-tool/ Timmermans, K. (2015, August 27). Zero-Based Budgeting: Not for Crises Only. Retrieved October 26, 2016, from http://ww2.cfo.com/budgeting/2015/08/zero-based-budgeting-no-longer-just-crisis-tool/ The website is a financial website that provides articles that create a benchmark that shows how economic strategies create better economic success. The point that this article is to explain that zero based budgeting isn’t just for an economic fallout. The article gives an example of a company that has been using zero based budgeting to help work the economic success. This article is important to the concrete understanding of zero based budgeting because it explains that you can use this type of budgeting with a successful economic period, and not just for crisis. The article explains how the use of this budgeting can help companies utilize this tool of economic strategy to create a surplus. This helps those who need a complete definition of this type of budgeting and how it can help and continue success from an economic solution. This creates a better use for the budgeting process.

Rumbol P. Phil Rumbol: Zero-based budgeting is time consuming and debilitating. Marketing Week (Online Edition)[serial online]. February 24, 2016;:1. Available from: Business Source Complete, Ipswich, MA. Accessed October 26, 2016.

As with the last two sources, this one also came from the Texas State database. The title of this source may seem counter productive to trying to sell the idea of zero-based budgeting, but I believe a wikipedia page should never be devoted to only spreading praise about a particular subject, person, or place. A good and educational piece should show both the pros and cons regarding whatever topic it's about, and I believe this article by Phil Rumbol does a good job of showing the other side of zero-based budgeting and how its not always a perfect fit in all circumstances. This article discusses a number of situations that occur in large enterprises where the logic of zero-based budgeting just doesn't make sense. I think this source will be useful to our wiki page as it provides a look into some of the criticisms of zero-based budgeting.

Outline and work schedule
Zero Based Budgeting: Team Nuggets Leading Paragraph ( Alex and Edwin 11/20) Zero Base Budgeting back in the 1970s was primarily concerned with attributing a particular activity of a company to the decision packages, which involves ranking and evaluating the packages for the benefits and costs, and making sure the resources are distributed appropriately. Although, in modern time Zero Base budgeting, the concept holds a lot more. ZBB is a process that can be repeated numerously to review every single dollar in the budget annually, establish a cost management culture, and also manage a financial performance monthly. (Fitzpatrick 2015) Contents 1. Components of ZZB 2. History 2.1 Creator 2.2 Purpose 3. Misconceptions 4. Advantages 5. Disadvantages 6. Use of ZBB in the Public Sector 6.1 USA 6.2 China 6.3 Impact on Government Operations 7. Use of ZBB in the Private Sector 7.1 3G Capital Partners LP       	7.2 Impact on Private Operations 8. References Components of Zero Based Budgeting ( Eugene 11/21) 3 major components of Zero ­Based Budgeting (Versel 1978): 1. Decision Package Formulation 2. Decision unit determination 3. Ranking Procedural processing of Zero Based Budgeting (Versel 1978): a. Determine organization’s priorities b. Determine ranking techniques c. Determine evaluation criteria History ( Emily and Eugene 12/2) Zero Based Budgeting was created during the 1970’s to help businesses cut down on costs. ( Kesmodel 2015)

Creator of ZBB Pete Pyhrr created Zero Based Budgeting for Texas Instruments as an accounting manager. He says in a People magazine interview he realized that many places in Texas Instruments were just founded because they were on the list, and had not been looked at in a while. He was then asked to run government costs for Georgia Governor Jimmy Carter. Mr. Pyhrr wrote Zero Based Budgeting: A Practical Management Toll for Evaluating Expenses. ( Kesmodel 2015)

Purpose of ZBB Mr. Pyhrr’s original purpose behind the budgeting process was to expose divisions of companies that were receiving money for no reason. It also helps companies can start from scratch when it comes to funding departments. ( Kesmodel 2015) Misconceptions of ZBB ( Emily 12/2) 1. ZBB means building your budget from zero 2. Implementing ZBB requires cutting to the bone 3. ZBB is overwhelming for a business and prevents it from doing anything else 4. ZBB only focuses on Selling, General, and Administrative Expenses. 5. ZBB is not for growing companies (Mignerey 2014)

Advantages ( Alex and Emily 12/7) 1. Flexible Budgets 2. Focused Operations 3. Lower Costs 4. More Disciplined Execution (Investopedia 2015) Disadvantages 1. Resource Intensiveness 2. Possible Manipulation 3. Bias Towards Short Term Planning ( Investopedia 2015) Use of ZBB in the Public Sector China- Impact on Government Operations ( Eugene and Mike 12/7) The concept of ZBB was introduced to Hubei, China in the early 1990s and the reformers with the intention of having ZBB as a general budgeting framework quickly realized it became a Chinese-style Target-Based Budgeting (TBB). Although, ZBB is still prevalent and applied to decisions in terms of budgetary of in a type of spending under the Chinese style TBB. (Ma 2006) USA-Impact on Government Operations ( Edwin 12/7) Still practiced today zero-base budgeting was developed at Texas Instruments Inc. during 1969. Governor Jimmy Carter of Georgia was the first to adopt the process for the preparation of the fiscal 1973 budget. The Government Economy and Spending Reform Act of 1976 was introduced by Senator Muskie, the bill required a congressional zero-base review and evaluation of every government authorization for programs and activities every five years and requires zero-base budgeting for all departments and agencies of the Executive branch. (Pyhrr 1977)

USA vs. China Issues that arose in Hubei, China when implementing ZBB and other budget reform types as in comparison to the US		a. Spending that is exempt from the ZBB process b. Lack of an integrated budget c. Impact of political factors (Bunch 2006)

Use of ZBB in the Private Sector (Mike and Emily 12/9) 3G Capital Partner LP This company owns Burger King parent restaurants and Heinz Co. and plans to merge with Kraft. They started to use zero based budgeting to help cut costs everywhere. ( Kesmodel 2015) Impact on Private Operations The company used zero based budgeting to eliminate hundreds of management jobs, using corporate jets to drop things off, and requiring employees to get permission to make photocopies. This process has been praised by stockholders. ( Kesmodel 2015)

Misconceptions
There are five misconceptions about Zero Based Budgeting that can make financial advisers shy away from using this type of budgeting.

1. The zero based budgeting is just starting your budget from zero. The reality is the zero based budgeting uses an approach that can facilitate cost viability, cost governance, and cost accountability.Using zero based budgeting correctly can lead to better cost management.

2. Using zero based budgeting is cutting a budget to ribbons. The reality is that the amount of budget cutting depends on what the company/ government body wants to do. This type of budget cutting depends also on the bodies top-down savings target.

3. Zero based budgeting can bog down a business and stop it from doing anything else. The reality is that yes, introducing a new cost management culture within a new business/ government body can take some time it does not always create stops. Having a team to implement this type of change can help make the transition easier.

4. Zero Based Budgeting only focuses on Selling, General, and Administrative Costs (SG&A) The reality is that this type of budgeting tool can be used in any type of cost. The main purposes of zero based budgeting is accountability, viability, aligned incentives, and a rigorous process and all of these can be important to any type of costs.

5. Zero based budgeting was not created for growth oriented companies. The reality is that zero based budgeting can be used at any company/ government body whether it is being used for cost saving or growth. Zero based budgeting is not a full slash and burn budgeting technique it can be used in successful situations to have strong visibility within a body to create more success.