Rather than build the current year's budget on increases from the previous year's budget,zero-based budgeting starts from a budget of zero and evaluates the necessity of every item.

Question

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Zero-based budgeting is a budgeting process that starts from scratch and requires each item to be justified based on needs and costs, rather than relying on past budgets as a baseline. It is different from the traditional incremental budgeting approach that assumes each budget year builds upon the previous one.

Rather Than Build the Current Year's Budget on Increases from the Previous