All 34 Zero-Based Budgeting questions
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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? What is the end result of the ZBB process? 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? How are decision packages ranked in ZBB?
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Budgeting & Forecasting › Zero-Based Budgeting

Does ZBB mean every budget starts at literally zero every year?

Beginner

Answer

The 'zero base' means no spending is assumed to continue automatically—each activity must be justified—not that the organization plans to spend nothing. Essential and value-adding activities are re-justified and funded; the point is that continuation is a decision, not a default.
Real-world example Core services are re-justified and funded under ZBB; nothing is simply assumed to carry over.

Common follow-ups: What does 'zero base' really mean? | Are essential activities still funded?

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