A method of budgeting in which all expenses must be 
justified for each new period. Zero-based budgeting starts 
from a "zero base" and every function within an 
organization is analyzed for its needs and costs. Budgets 
are then built around what is needed for the upcoming 
period, regardless of whether the budget is higher or lower 
than the previous one.

A method of budgeting in which all expenses must be 
justified for aeach new period.Z.B.B. starts from a zero 
base and every function with in an organisation is analysed 
for its needs and costs.Z.B.B. allows top level strategic 
goals to be implemented into the budgeting process by tying 
them to specific functional areas of the organisation.where 
costs can be first grouped,then measured against previous 
results and current expectations.

It is a management tool which provides a systematic method 
for evaluating all operations and programmers, current of 
new allows for budget reductions and expansions in a 
rational manner and allows reallocation of source from low 
to high priority programs.

ZBB requires the budget request justified in complete 
detail by each division manager starting from the Zero-
base. The Zero-base is indifferent to whether the total 
budget is increasing or decreasing.

preparing budget with out taking any past experience,is ZBB
it is starting from the streacth,and it has no base of any 
other and more over it is compleatly individual.

Plz make u r correction if it has anything wrong.

TQ
Urs Lucky.

Z.B.B is  a method of producing a budget which ignores what
has happened in the past. Instead, each element of the
budget is built up from a new set of assumptions.

A method of budgeting in which all expenses must be 
justified for each new period. Zero-based budgeting starts 
from a "zero base" and every function within an 
organization is analyzed for its needs and costs. Budgets 
are then built around what is needed for the upcoming 
period, regardless of whether the budget is higher or lower 
than the previous one

Zero-based budgeting is a technique of planning and 
decision-making which reverses the working process of 
traditional budgeting. In traditional incremental 
budgeting, departmental managers justify only increases 
over the previous year budget and what has been already 
spent is automatically sanctioned. No reference is made to 
the previous level of expenditure. By contrast, in zero-
based budgeting, every department function is reviewed 
comprehensively and all expenditures must be approved, 
rather than only increases.[1] Zero-based budgeting 
requires the budget request be justified in complete detail 
by each division manager starting from the zero-base. The 
zero-base is indifferent to whether the total budget is 
increasing or decreasing.