#zero based budgeting example

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What is zero-based budgeting? Zero Based Budgeting Defined

What is zero-based budgeting? Zero Based Budgeting Defined

Zero-based budgeting, or ZBB, is a rigorous budgeting process that requires every dollar of every expense to be justified even if the expense has been occurring for many years. For example, if a company has been spending $100,000 each year for the rent of warehouse space, the zero-based budgeting process assumes that nothing was spent previously. As a result, the warehousing activities must be…

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Zero-Based Budgeting - What Is Zero Based Budgeting

Zero-Based Budgeting – What Is Zero Based Budgeting

Rather than the previous year’s budget being the starting point for the next budget, a zero-based budget assumes no activities: everything in the budget must be justified.

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