Difference between revisions of "Zero-based budgeting"
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| − | Investopedia defines | + | Investopedia defines '''Zero-based budgeting''' (ZBB) 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."<ref>{{cite web |url=http://www.investopedia.com/terms/z/zbb.asp |title=Zero-Based Budgeting - ZBB |work=Investopedia }}</ref> |
| − | [[Category: Finance]] | + | ==History== |
| + | ZBB was first pioneered in the early 1970s by Pete Pyhrr, then an accounting manager for [[Texas Instruments|TI]].<ref>{{cite web |url=https://www.wsj.com/articles/meet-the-father-of-zero-based-budgeting-1427415074 |title=Meet the Father of Zero-Based Budgeting |work=[[Wall Street Journal]] |date=March 26, 2015 }}</ref> | ||
| + | |||
| + | ==Effect on government spending== | ||
| + | Several members of congress have indicated that they favor ZBB,<ref>{{cite web |url=https://thehill.com/blogs/congress-blog/economy-a-budget/231455-in-favor-of-zero-based-budgeting |title=In favor of zero-based budgeting |work=[[The Hill]] |date=June 7, 2012 }}</ref> since it would put more emphasis on spending cuts.<ref>{{cite web |url=https://www.washingtontimes.com/news/2015/mar/30/rep-dennis-ross-pushes-zero-based-budgeting-for-fe/?page=all |title=Dennis Ross pushes zero-based budgeting for federal government |work=[[Washington Times]] |date=March 30, 2015 }}</ref> | ||
| + | |||
| + | ==Compare with== | ||
| + | * [[Baseline Budgeting]] | ||
| + | |||
| + | == External links == | ||
| + | |||
| + | *[https://www.ramseysolutions.com/budgeting/how-to-make-a-zero-based-budget#:~:text=What%20Is%20Zero%2DBased%20Budgeting,%2C%20a%20job%2C%20a%20goal. How to Create a Zero-Based Budget] | ||
| + | *[https://www2.deloitte.com/us/en/pages/operations/articles/zero-based-budgeting.html Zero-based budgeting], Deloitte US | ||
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| + | Videos: | ||
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| + | *[https://www.youtube.com/watch?v=Ryn49zHaYcM What Is a Zero-Based Budget?], Every Dollar | ||
| + | *[https://www.youtube.com/watch?v=MXYtqbHnaLo What is Zero-based budgeting (ZBB) | McKinsey & Company] | ||
| + | *[https://www.youtube.com/watch?v=VU5MtqCMbVo What is Zero-based Budgeting? | Advantages, disadvantages of Zero-based budgeting.] | ||
| + | |||
| + | ==References== | ||
| + | <references /> | ||
| + | |||
| + | [[Category:Finance]] | ||
Latest revision as of 13:57, April 1, 2024
Investopedia defines Zero-based budgeting (ZBB) 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]
History
ZBB was first pioneered in the early 1970s by Pete Pyhrr, then an accounting manager for TI.[2]
Effect on government spending
Several members of congress have indicated that they favor ZBB,[3] since it would put more emphasis on spending cuts.[4]
Compare with
External links
- How to Create a Zero-Based Budget
- Zero-based budgeting, Deloitte US
Videos:
References
- â Zero-Based Budgeting - ZBB. Investopedia.
- â Meet the Father of Zero-Based Budgeting. Wall Street Journal (March 26, 2015).
- â In favor of zero-based budgeting. The Hill (June 7, 2012).
- â Dennis Ross pushes zero-based budgeting for federal government. Washington Times (March 30, 2015).