zero-based budgeting

 A management policy which calls on all programs to justify every aspect of their funding at the start of each year.
 The idea behind this policy is that nothing is sacred and all expenditures must be continually justified.
 ► “Zero-based budgeting is a means of rooting out waste by challenging each component of overhead on an annual basis.” (D&B Reports, Sept./ Oct., 1991, p.48)

American business jargon. 2014.

Look at other dictionaries:

  • Zero-based budgeting — is a technique of planning and decision making which reverses the working process of traditional budgeting. In traditional incremental budgeting, departmental managers justify only increases over the previous year budget and what has been already …   Wikipedia

  • zero-based budgeting — ➔ budgeting * * * zero based budgeting UK US (ABBREVIATION ZBB) noun [U] ACCOUNTING ► a method for business budgets in which all costs are considered again each year, and each department must say why it needs the amount it asks for: »Zero based… …   Financial and business terms

  • zero-based budgeting — zero base budgeting or zero based budgeting noun A system in which the budget of an organization, department, etc is drawn up anew each year without reference to any previous budget • • • Main Entry: ↑zero …   Useful english dictionary

  • zero-based budgeting — Fin a method of budgeting which requires each cost element to be specifically justified, as though the activities to which the budget relates were being undertaken for the first time. Without approval, the budget allowance is zero. Abbr. ZBB …   The ultimate business dictionary

  • Zero-Based Budgeting - ZBB — A method of budgeting in which all expenses must be justified for each new period. Zero based budgeting starts from a zero base and every function within an organization is analyzed for its needs and costs. Budgets are then built around what is… …   Investment dictionary

  • zero-base budgeting — a process in government and corporate finance of justifying an overall budget or individual budgeted items each fiscal year or each review period rather than dealing only with proposed changes from a previous budget. Abbr.: ZBB. Also, zero based… …   Useful english dictionary

  • zero-base budgeting — a process in government and corporate finance of justifying an overall budget or individual budgeted items each fiscal year or each review period rather than dealing only with proposed changes from a previous budget. Abbr.: ZBB. Also, zero based… …   Universalium

  • zero-base budgeting — ZBB A *budgeting methodology based on the recalculation of costs for each budgetary period. In contrast to traditional budgeting, which is based on historical assumptions and incremental changes in relation to prior years, ZBB requires new cost… …   Auditor's dictionary

  • zero-based — or zero base adjective Date: 1970 having each item justified on the basis of cost or need < zero based budgeting > …   New Collegiate Dictionary

  • zero-based — ¦ ̷ ̷  ̷ ̷ ¦ ̷ ̷ adjective or zero base ¦ ̷ ̷  ̷ ̷ ¦ ̷ ̷ : having each item justified on the basis of cost or need zero based budgeting …   Useful english dictionary

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