All 34 Zero-Based Budgeting questions
More in Zero-Based Budgeting
Is ZBB used every year? How is it applied practically? What is a decision unit in ZBB? In which sectors or situations is ZBB most commonly applied? What is the main criticism of incremental budgeting that ZBB addresses? Does ZBB mean every budget starts at literally zero every year? What does 'building a budget from scratch' mean in ZBB? What is the difference between ZBB and priority-based budgeting? Is ZBB only about cutting costs? What are the main steps in the ZBB process? What is a decision package in ZBB?
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Budgeting & Forecasting › Zero-Based Budgeting

What is the end result of the ZBB process?

Beginner

Answer

The end result is a budget built from ranked, justified decision packages, funded in priority order up to the resource limit—so the approved budget reflects deliberate choices about what activities to fund and at what level, rather than an incremental roll-forward. Lower-ranked activities may be reduced or cut.
Real-world example The final ZBB budget funds the top-ranked packages, having consciously dropped low-priority ones.

Common follow-ups: How is the final budget assembled? | What happens to low-ranked packages?

The Budgeting Process Types of Budgets Zero-Based Budgeting
All 34 Zero-Based Budgeting questions