
Zero-base budgeting (ZBB) is a budgeting method in which all budgets must be justified anew and from scratch (zero-base) in each planning period. In contrast to traditional budgeting, where budgets are often based on the values of the previous period, those responsible must justify each expenditure in detail. The aim is to eliminate inefficient expenditure and establish strict cost control. This forces companies to critically scrutinise their expenditure and allocate resources in a more targeted manner. Special evaluation requirements can be met by add-ons such as the Versino Financial Suite that enable advanced financial analyses.
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