What is zero-based budgeting?
Zero-Based Budgeting is a method used to create a budget that starts at zero at the beginning of every new month.
What are the benefits of zero-based budgeting?
Zero-based budgeting has many benefits, including the detection of budgets that are inflated and the ability to motivate employees to find cost-effective solutions and undertake responsible decision-making concerning financial choices.
What is the disadvantage of zero-based budgeting?
Zero-based budgeting is time-intensive and complex as calculating an entire budget from scratch may require the involvement of many employees and an adequate amount of time.