Difference between revisions of "Zero-based budgeting"

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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."[http://www.investopedia.com/terms/z/zbb.asp]
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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>
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==History==
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ZBB was first pioneered in the early 1970's by Pete Pyhrr, then an accounting manager for [[Texas Instruments|TI]].<ref>{{cite web |url=http://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>
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==Compare with==
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* [[Baseline Budgeting]]
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==References==
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<references />
  
 
[[Category: Finance]]
 
[[Category: Finance]]

Revision as of 23:14, June 29, 2015

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 1970's by Pete Pyhrr, then an accounting manager for TI.[2]

Compare with

References