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

Consumer Promotion

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

Forecast Accuracy

Forecast accuracy refers to the degree to which a forecast aligns with actual sales data, indicating

CPG manufacturing

In the Consumer Packaged Goods industry, the term “CPG company” typically denotes manufacturers within the sector.