Zero-base budgeting

Zero-base budgeting (ZBB)

Budgeting method that disregards the previous year's budget in setting a new budget, since circumstances may have changed. Each and every expense must be justified in this system.

Zero Based Budgeting

A system of budgeting where each department or division of a company must justify all expenditures and allocations rather than simply increases over the previous fiscal year. That is, the budget is made with every department starting at zero dollars to spend, and each department must demonstrate need for what it wants to receive. Zero-based budgeting is advantageous because it is more detail-oriented than other forms of budgeting; among other things, it makes it easier to detect and eliminate over-inflated budgets. On the other hand, zero-based budgeting is more difficult and time consuming to put together and often has a bias toward departments that directly produce revenue instead of departments like R&D.

Mentioned in ?

References in periodicals archive ?

Everybody must justify every expenditure so that we eliminate any wastage," Mr Rotich said in an interview on December 26."In fact, we have adopted what's called a zero-base budgeting, so you start from zero and build up by justifying every single cent that you want to spend in the next financial year (2018-19)."Budget cuts a process technically referred to as fiscal consolidation are expected to free some cash to various sectors that have the biggest impact on growing the economy and creating new jobs.

Tight budget cuts loom as State seeks funds for Big Four agenda

But Beckett also pointed to Texas' early adoption of zero-base budgeting, which, unlike traditional budgeting, has departments start at zero and then justify their spending requests.

From the Capitol Steps to the Mongolian Steppes

The City of Garland, Texas, has a long and interesting history with zero-base budgeting, often referred to as ZBB.

Zero-base budgeting: a concept whose time has come--again

Complete due diligence and then build the budget from the ground up, via the use of "zero-base budgeting." Because finances vary each year, zero-base budgeting helps to achieve the optimum value from available funds from year to year.

Fiscal fundamentals: research, order and organization are required when devising an annual budget

Still, because costs can be hard to contain, many campus managers are zero-base budgeting their food operations by focusing on student needs.

Catering to the client: new-millennium universities now see their student diners as valued customers, not captive audiences

We have been presented another method of budgeting against lack of effectivity but also as a means of delegating decisions from higher to lower levels in an organization, namely zero-base budgeting. We have also been familiar with operational research as a way to make rational decisions.

Some Aspects of the Usefulness of Living Systems Theory in a Municipal Organization

For example, the concept of zero-base budgeting is well known to logisticians, but during the period between 1980 and 1996, no citations of this concept were found.

Applying theories from other disciplines to logistics

Back in the 1970s, Zero-base budgeting (ZBB) was very much in the news.

Synergy from A to Z, ABC to ZBB

Zero-base budgeting provides a better chance to evaluate the costs and benefits of security activities.

Dealing with dollars

Zero-base budgeting in budgeting management: A manual for librarians.

The changing library environment

In "Zero-Base Budgeting: Modern Experiences and Current Perspectives," Shayne Kavanagh finds ways governments can adapt some of ZBB's original concepts to conform to a contemporary strategic approach to budgeting.

Best practices in budgeting

When using zero-base budgeting (ZBB), a government builds a budget from the ground up, starting from zero.

Zero-base budgeting: modern experiences and current perspectives

Financial browser ?

Full browser ?

CITE

Site: Follow: Share:

Open / Close