Zero based budgeting: Zero-based budgeting is a very

Zero-based budgeting is a very effective way to track and reduce spending to achieve financial goals, though it does take more time and analysis than traditional budget methods. Here's everything ... Zero-based budgeting is an approach where you account for every dollar earned and earmark it for a specific purpose. Also known as a zero-sum budget, it is designed to leave no money to float in your bank account monthly. What is zero-based budgeting? ZBB is a budgeting process where, on a very granular level, you go through a company’s spending and determine what resources various business units require. That means looking at individual cost categories across all business units. Zero-Based Budgeting Meaning and Definition Zero-based budgeting in management accounting involves preparing the budget from scratch, that is, with a zero-base. It involves re-evaluating every line item of the cash flow statement and justifying all the expenditures a department will incur. Thus, the definition goes as “a method of budgeting whereby all the expenses for the new period are calculated on the basis of actual expenses that are to be incurred and not on the differential basis ...