develop a zero based budget which shows skills in breaking down costs for a service or project in relation to planned activity levels and outcomes or deliverables.

This purpose of this assessment is to enable students to apply the knowledge they have gained from reading the Modules and completing the four sets of questions during the session. There is a tutorial activity designed to develop students’ skills in use of Excel. Completion of the tutorial activity ensures that students can prepare the business case using financial data.
The assignment is designed for students to develop a zero based budget which shows skills in breaking down costs for a service or project in relation to planned activity levels and outcomes or deliverables. Development of a business case is a common activity for health managers to undertake.

Note: Please see excel file on attached file(81726094_Assessment_Business_Case_Budget_and_Break-even_Analysis) assignment2b, was designed to help prepare the financial and activity details for the business case (assignment 2c).


1. Prepare a budget for this new service/project. Remember outputs as well as financial data is required.

2. In preparing the budget, students should show the build-up of the budget from a zero base including all significant line items.

3. A contingency plan must be included eg if desired funding is not available to the optimal level desired at 10% less than the optimal budget. Show deletions and cost cutting measures.

4. Include a financial activity analysis and a break-even analysis chart to show at what level of activity the service ‘breaks even’. In the public sector this means to come in on budget rather than make a profit.

You will be assessed on the following:
• Writing skills.
• Rationale/justification for a new service.
• Application of zero based budgeting principles.
• Understanding of activity/output requirements.
• Veracity of the break-even analysis.
• Quality, feasibility and relevance of performance criteria.

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