Nhlanhla Yende

Zero-based budgeting is a method of budgeting where all the expenses have to be justified for each new period. This method starts with a zero base and all the functions in a company are analyzed for costs and needs.

Zero based budgeting is a really good approach to planning and making decision which is the opposite of traditional budgeting. The term "zero-based budgeting" is sometimes used in personal finance to describe "zero-sum budgeting", the practice of budgeting every dollar of income received, andthen adjusting some part of the budget downward for every other part that needs to be adjusted upward.

Zero-based Budgeting

What are the main characteristics of Zero base budget