Zero-Based Budgeting Represents a Revolutionary Approach to Planning Future Activities

Abstract

Zero-based budgeting is a structured method of budgeting for enterprise activities as if each were initiated from scratch, or "zero base." Under this approach, multiple alternatives for each activity are identified, costed, and assessed based on their potential benefits. The fundamental principle is that every unit of expenditure must be justified. This methodology contrasts with traditional budgeting practices, as it does not rely on prior expenditure levels and instead evaluates costs anew. In contemporary times, zero-based budgeting is increasingly recognized as a groundbreaking approach to planning future activities.