Hindi: शून्य आधारित बजट
Nepali: शून्य आधारित बजेट)
It is a method of budgeting in which all expenses must be justified to zero for each new period.
Zero based budget involves re-evaluating every line item of cash flow statement; all the department incur expenditure.
The manager is responsible for preparation cash flow budget; ZBB requires to prepare and justify the budgeted expenditure from a zero base.
we assume that initially there is no commitment to spend on any activity (there are no balances to be carried forward). Compare incremental budget.