Budgeting & Forecasting › Zero-Based Budgeting

What is a decision package in ZBB?

Intermediate

Answer

A decision package is a document describing a specific activity or function: its objective, the resources and cost required, the benefits, the consequences of not funding it, and often alternative levels of service (mutually exclusive or incremental packages). Managers rank these packages to decide what to fund within the available budget.
Real-world example The IT helpdesk decision package sets out its cost, service levels, and the impact of cutting it.

Common follow-ups: What does a decision package contain? | What are incremental packages?