Zero Based Budgeting - ZBB


 
 
Concept Explanation
 

Zero Based Budgeting - ZBB

Zero Based Budgeting (ZBB) : It is a method of budgeting in which all expenses must be justified for each new period. A zero-based budgeting starts from a "zero base" and every function within an organisation is analysed for its needs and costs. Budget is then built around what is needed for the upcoming period, regardless of whether the budget is higher or lower than the previous one.

 
 


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