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

Base Price

Also referred to as non-promoted price, it is the average price of an item across all

Advertising Allowance

Also referred to as marketing co-op allowance or promotional allowance, it is the dollar amount that

Average Price

Weighted average of actual price and promoted price for an item. It does not take into