Tom Jackson, president of Jackson Manufacturing, suspects that the managers of two departments have been padding their budgets for the last three years. To eliminate this problem, Tom would

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Zero-base budgeting (ZBB) begins with a budget of zero and requires managers to justify every expense for each new period. This approach can help detect and eliminate unnecessary expenses and prevent budget padding. Thus, to eliminate the problem of budget padding, Tom Jackson should use zero-base budgeting. Firing the managers, hiring an efficiency expert or a new accountant, or using traditional budgeting may not necessarily solve the problem of budget padding.

Tom Jackson, President of Jackson Manufacturing, Suspects That the Managers