Zero-based budgeting requires managers to justify all costs of programs as if these programs were being proposed for the first time

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Zero-based budgeting is a technique in which managers need to justify all costs of programs as if they were being proposed for the first time. The approach is different from traditional budgeting where managers only need to justify incremental changes to previous budgets. Zero-based budgeting is used to identify inefficiencies, reduce costs, and improve program performance. It requires managers to evaluate all activities and costs, prioritize them based on their importance and budget accordingly.

Zero-Based Budgeting Requires Managers to Justify All Costs of Programs