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