ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -What is zero-based budgeting (ZBB)? 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: -What is zero-based budgeting? Zero-based budgeting (ZBB) is a budgeting approach that involves developing a new budget from scratch every time (i.e., starting from “zero”), versus starting with the previous period’s budget and adjusting it as needed.

Detailed explanation-3: -Zero Based Budgeting is a method of budgeting in which all the expenses must be justified for each new period. Zero based budgeting starts from zero base and each function has to analyse the cost from zero.

Detailed explanation-4: -Definition: Zero Based Budgeting, also called ZBB, is the process of creating a budget from nothing without using the prior year’s budget or spending numbers. No activities are assumed to be untouchable. All expenses are judged and must be justified in order to remain in the budget.

Detailed explanation-5: -Start. Begin at ground zero. Evaluate. Evaluate every cost area. Justify. Account for all components of the budget. Streamline. Determine what activities should be performed and how. Execute. Roll out comprehensive planning and execution processes.