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

Horizontal Merchandizing

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

Basket Size

The amount that a customer spends in a retail store in single transaction.