IGNOU MHH 101 2026 2027 - Discuss Zero based Budgeting (ZBB) under following headings- Definitio

Question

Discuss Zero based Budgeting (ZBB) under following headings- Definition,

18 Aug 2026

Answer :

Word Count : 454

Zero Based Budgeting (ZBB) is a budgeting technique in which the preparation of the budget starts from a “zero base” every year or during each budgeting cycle. Under this approach, no previous expenditure is automatically accepted as necessary. Every activity, programme, and expenditure must be justified and evaluated before funds are allocated to it. Thus, unlike traditional budgeting, which generally takes the previous year’s budget as the starting point and makes adjustments for inflation, growth, or other changes, ZBB begins with the assumption that there is no existing budget and that all expenditures have to

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