How does ZBB support cost transparency and accountability?

Intermediate

Answer

By requiring managers to describe, cost, and justify each activity and its service levels, ZBB makes the purpose and cost of spending explicit and visible, and ties funding to accountable decision units. This transparency exposes cross-subsidies and low-value spend and holds managers accountable for the value their activities deliver.

Real-world example ZBB reveals the true cost of an activity managers had never itemized, improving accountability.

Common follow-ups: What does the justification requirement reveal? | How does it aid accountability?

The Budgeting Process Zero-Based Budgeting Zero-Based Budgeting

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