Budgeting & Forecasting › Zero-Based Budgeting

Is ZBB only about cutting costs?

Beginner

Answer

No. While ZBB often reduces costs, its core purpose is to reallocate resources to the highest-value activities by justifying and ranking all spending. Used well it can increase spending on priorities funded by cutting low-value activities, so it's about value-based allocation, not just cost reduction.
Real-world example ZBB funds a new priority initiative using savings from eliminated low-value activities.

Common follow-ups: What is ZBB's core purpose? | Can ZBB increase some budgets?