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

Dollar

Refers to a retail outlet that specializes in selling a wide range of general merchandise and

Prestige Pricing

A pricing strategy where products are priced at a premium to signal superior quality and status,