Question 7

3 marks
Content - 1 mark
Application - 2 marks
Content
1 mark - either explains the term zero budgeting or states an advantage
Application
1 mark - Limited application to the case
2 marks - Good application

Possible answers
Zero budgeting is where all departments start with nothing and have to negoiate their budget
Zero budgeting would mean that Pete would have tighter financial control over his business