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

Blocking

Also called facing, zoning or fronting, a retail merchandizing concept where all products of the same

Market Share

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