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

Unplanned Out-of-Stocks

Instances where a product is unexpectedly unavailable for purchase, often resulting in lost sales and dissatisfied

Brand Assessment

Evaluates a brand’s strengths, weaknessess and opportunities for brand development and repositioning.

Just in time inventory

An inventory management that is focused on optimizing inventory levels by receiving raw materials and components