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Topical Terminology > Zero Based Budget



1 Definition

Zero Based Budget

For Zero Based Budget we have a term and definition in Accounting.



Zero Based Budget (Accounting)

is where the expenses or costs of the prior year are not taken into consideration when establishing expense or budgetary levels looking forward. Each expense category starts from zero. All expenses or cost levels within the budget must be justified or re-justified as being necessary; thus “zero-base”.




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