Difference between revisions of "Zero-based budgeting"

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(Created page with "Investopedia defines zero-based budgeting as "A method of budgeting in which all expenses must be justified for each new period. Zero-based budgeting starts from a "zero base" an...")
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Revision as of 18:50, June 10, 2011

Investopedia defines zero-based budgeting as "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 needed for the upcoming period, regardless of whether the budget is higher or lower than the previous one."[1]