Investor Glossary-zero based budgetingInvestor Glossary-zero based budgetingInvestor Glossary-zero based budgetingInvestor Glossary-zero based budgetingInsightful stock market charts - Click here
investor
Categories    # A B C D E F G H I J K L M N O P Q R S T U V W X Y Z

Zero Based Budgeting

The HTML to link to this page
 

Zero based budgeting is a method of budgeting where proposed expenditures must be justified for a given period of time in the future, such as an upcoming quarter or fiscal year. Past expenditures only serve as a guide, not as justification when using zero based budgeting. Every dollar must be accounted for in zero based budgeting. Often the outcomes of zero based budgeting are well-defined, yet the costs and timeliness are hard to ascertain. Zero based budgeting can help an organization save money and improve services. The downside to zero based budgeting is that it may increase the time and expense of preparing a budget and can cause complications if not done properly. Usually zero based budgeting can be applied to personal finances, as well as marketing and sales projects. Zero based budgeting is also encouraged for government agencies.



Rate this Zero Based Budgeting definition...

Learn about investing with the Investor Glossary Term of the Day


Click here for insightful stock market charts. Where is the market headed? The answer may surprise you. Find out
with the exclusive & Barron's recommended charts of Chart of the Day.


Popular Terms: quality assurance, minority interest, command economy, Zero Cost Collar, APR, annual return, Key Rate Duration, average price per share, ex-dividend date, phantom income, risk management, in escrow, EBITDA, diluted share, option premium, cancelled check, covered put, required rate of return, labor relations, VIX, balance sheet, current ratio, LIBOR, real GDP, 401a, debt service coverage, 1031 exchange, margin rate, 144a, liquidity ratio, class C shares, wholly-owned subsidiary, deferred tax, irrevocable trust, 1035 exchange, stock market close, deferred revenue, implied volatility, reverse mortgage, retained earnings, dividends payable, inflation, stock split, open position, limit order, ex-dividend, FICO score, FTSE, per diem


Accounting | Banking | Bonds | Brokers | Economy | Futures | Mutual Funds | Options | Real Estate | Retirement | Stocks | Taxes | Technical Analysis
Home | Term of the Day | Suggest a Term | Chart of the Day | Dogs of the Dow
©2004-2016 Investor Glossary - All rights reserved - Terms of Use