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

Market Basket Analysis

A data mining tool used to identify patterns of items frequently purchased together by analyzing transaction

Market Share

Represents the portion of an industry’s total sales that is accounted for by a specific company