Zero-Based Budgeting

Advanced 💰 Finance / Accounting

Definition

Starting from zero every budget cycle instead of just tweaking last year's numbers—micromanagement theater.

Example Usage

We're implementing zero-based budgeting to make sure every dollar is justified.

Origin

Management philosophy developed in the 1970s

Fun Fact

Zero-based budgeting sounds good but mostly results in everyone inflating their estimates

Source: Corporate budgeting and financial management terminology

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