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


Home | Term of the Day | Suggest a Term | Chart of the Day | Dogs of the Dow
Investor Glossary Index >>> # 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 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
Accounting | Banking | Bonds | Brokers | Economy | Futures | Mutual Funds | Options | Real Estate | Retirement | Stocks | Taxes | Technical Analysis
©2004-2014 Investor Glossary - All rights reserved - Terms of Use