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

Heavy Buyers

Consumers who consistently spend significantly more than average within a specific product category, making them a

Incremental Revenue

Represents the additional profit generated by a business as a result of increased sales volume. It

Category Buyer

The person is responsible for assisting the procurement manager and category team in implementing procurement and