Budgets, forecasts & scenarios · Working
Zero-based budgeting
Also called: ZBB
ELI5
Budgeting that requires expenditures to be justified from a fresh base rather than automatically carried forward.
Used in conversation
“State the period, currency and accounting basis for zero-based budgeting.”
Pitch context
You will see “Zero-based budgeting” in financial models, budgets, board packs and investor materials when the discussion reaches budgets, forecasts & scenarios.
Why it matters: In budgets, forecasts & scenarios, different calculation boundaries, periods or accounting treatments can change the number and the decision.
Caution
Calculation, recognition and disclosure can vary by accounting framework, company policy and reporting context.
Sources & evidence · 5
Direct term-level sources and supporting source families.
- U.S. Small Business Administration — Write your business planDirect source · primary · checked 2026-08-16
- IFRS Foundation — IFRS GlossaryDirect source · primary · checked 2026-08-16
- Financial Accounting Standards Board — FASB Accounting Standards CodificationSupporting source family · primary · checked 2026-08-16
- U.S. Small Business Administration — Break-even pointSupporting source family · primary · checked 2026-08-16
- U.S. Securities and Exchange Commission — Non-GAAP Financial Measures — Compliance and Disclosure InterpretationsSupporting source family · primary · checked 2026-08-16