A zero-base budget (ZBB) is a cash-flow budget where the manager responsible must prepare and justify all expenditures from a zero base, assuming no prior spending commitments. This method compels a thorough review of each cost element, contrasting sharply with the incremental budget, which adjusts previous budgets.
Zero-base budgeting (ZBB) is a method of budgeting in which all expenses must be justified for each new period, starting from a 'zero base.' This approach contrasts with traditional budgeting, which typically only requires justification for incremental changes to the budget.
