Zero-Based Budgeting (ZBB)

Zero-Based Budgeting (ZBB)

A budgeting approach where all expenses must be justified for each new budget period, rather than basing the budget on previous spending levels. ZBB requires departments and managers to justify every expense, starting from a “zero base,” which can lead to more efficient resource allocation and cost control.

Related Terms

High-Low Pricing

A strategy where a company sets an initial high price for a product and later reduces

Horizontal Merchandizing

A retail display technique where products are arranged in a left-to-right manner along a horizontal plane.

Consumer Promotion

Also known as sales promotion, is a temporary marketing strategy aimed at boosting brand awareness and