Question

Berkshire Community College employs 100 staff members and 61 faculty. The president of the college is working on the budget for the next year and isn't sure what type of budgeting process he should use. What type of budget would make the most sense in this case and why?

Answer 1

Zero-Based Budgeting (ZBB) would make the most sense for Berkshire Community College because it allows for an evaluation of every expense and allocation of resources based on specific needs and priorities. Using ZBB, the college can identify areas of cost savings and ensure resources are allocated efficiently.

Step-by-step explanation:

The most suitable type of budgeting process for Berkshire Community College would be Zero-Based Budgeting (ZBB). ZBB is a budgeting approach in which all expenses must be justified for each new budget period, starting from zero. This type of budgeting would be appropriate in this case because it allows the college administration to evaluate every expense and allocate resources based on specific needs and priorities, rather than relying on historical budget figures.

For example, using ZBB, the president of the college can assess the budget allocation for staff members and faculty by considering factors such as program enrollments, student demand, and faculty-student ratios. This approach ensures that resources are allocated based on the college's current goals and priorities, leading to a more efficient use of funds.

Furthermore, ZBB can help the college identify areas where cost savings can be made, such as by reducing unnecessary expenses or exploring alternative sources of funding.