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

Product Variants

A specific version of a ‘master’ product that is differentiated by one or more attributes, such

Coupon

A document or digital code that grants the holder a discount or rebate on a purchase.

Promotion Effectiveness

Refers to the degree to which a promotional marketing campaign successfully achieves its intended objectives, such