What is Zero Based Budgeting?

Answer Posted / harshal m. janbandhu

Justifing budgeted expenditure in the practice of perfomance to be acheived without reference to perexisting plans or achievement . ZBB rests on the philosophy that all spending need to be justified . each part of a company will start from a zero base each year and has to justify the budget it requires. top managment will only allow the budget when it convinced that the proposed activities represent ' value for money'.and all topics start with the zero point.

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