Definition, Meaning & Synonyms
zero-base
Noun
/ˈzɪəroʊ beɪs/
Definition
A budgeting approach in which all expenses must be justified for each new period, starting from a ‘zero base.’
Examples
- Many organizations are adopting zero-base budgeting to optimize their financial resources.
- In a zero-base system, each department must submit a detailed justification for their budget requests.
Meaning
Zero-base budgeting requires all expenses to be analyzed for their necessity and relevance, rather than just adjusting the previous budget numbers.
Synonyms
- Ground-up budgeting
- Zero-based budgeting
- Base-zero budgeting
