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What is zero budget?

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Anonymous

10y ago
Updated: 7/5/2022

Zero -Based Budgets (or ZBB) is budgeting without using previous data. For example, a new business start up cannot base its budgeting on last year since it is only just starting. Therefore, the budgeting process must start form scratch. This can also be done within a business that has been running for some time if the managers feel the previous years budgets were extraordinary. this may happen if, for example, last year the business had replaced all its machinery. Clearly the business wont be expecting to replace all the machinery again so will set up a new budget from scratch.

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Hallie Gutmann

Lvl 10
3y ago

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