Budgeting method that disregards the previous year's budget in setting a new budget, since circumstances may have changed. Each and every expense must be justified in this system.

Definition Budgeting method for a corporation or government in which all expenditures must be justified each year, not just amounts in excess of the previous year.

Financial planning that starts from zero at the beginning of each new budget cycle, with no assumptions carried over from previous experience, a method used in both the public and private sectors. In [..]

A rigorous method of drawing up BUDGETS in which the premise is that expenditures will be zero, and so allocations are made thereafter, only upon a justification of the true requirements. Thus, this m [..]

A process emphasizing management's responsibility to plan, budget, and evaluate. Zero-base budgeting provides for analysis of alternative methods of operation and various levels of effort. It places new programs on an equal footing with existing programs by requiring that program priorities be ranked, thereby providing a systematic basis fo [..]