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What is Zero-Based Budgeting Explained about?

Zero-Based Budgeting (ZBB) requires all expenses to be justified from scratch each period, ensuring that total income minus expenses equals zero. In personal finance, every dollar of income is allocated to specific categories, while in a business context, departments must justify their budget requests based on current needs and expected ROI. This approach contrasts with traditional budgeting, which often relies on previous spending figures.

Author

naoltolcha2121

Language

EN