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

Excess Inventory

Also referred to as surplus inventory, denotes the surplus stock held by a company beyond what

High-Low Pricing

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

Brand Refresh

When a brand improvises its existing image and communications while maintaining its core identity.