zero-based budgeting
Financial Dictionary — Budgeting
Definition
Rather than the previous year's budget being the starting point for the next budget, a zero-based budget assumes no activities: everything in the budget must be justified.
Use cases, Example & Why it matters
Use cases
- Used to explain the concept in accounting and business contexts.
- Used when training staff or documenting procedures and policies.
- Used when training staff or documenting procedures and policies.
Example
- Example: Teams reference **zero-based budgeting** when defining terms in manuals, policies, or training materials.
Why it matters
- Why it matters: Improves clarity and consistency across documentation and decision-making.