ECONOMICS

Detailed explanation-1: -Zero-based budgeting (ZBB) is a budgeting technique in which all expenses must be justified for a new period or year starting from zero, versus starting with the previous budget and adjusting it as needed.

Detailed explanation-2: -Zero-based budgeting (ZBB) is a method of budgeting in which all expenses must be justified for each new period. The process of zero-based budgeting starts from a “zero base, ” and every function within an organization is analyzed for its needs and costs.

Detailed explanation-3: -Zero-based budgeting is when your income minus your expenses equals zero. Perfect name, right? So, if you make $3, 000 a month, everything you give, save or spend should add up to $3, 000. Every dollar that comes in has a purpose, a job, a goal.

Detailed explanation-4: -Zero-based budgeting Zero-based budgeting requires all costs to be justified by the expected benefits.

Detailed explanation-5: -ZBB is a highly effective business-planning tool to help a company identify and eliminate unnecessary costs, keep control of your spending, and focus on high-profit initiatives. Budgeting, including ZBB, is the tactical implementation of a company’s strategic plan.