ZERO BASED BUDGET Definition

Bookmark and Share

ZERO BASED BUDGET is where the expenses or costs of the prior year are not taken into consideration when establishing expense or budgetary levels looking forward. Each expense category starts from zero. All expenses or cost levels within the budget must be justified or re-justified as being necessary; thus "zero-base".

Learn new Accounting Terms

MARKETABLE CAPACITY is an assessment of total capacity compared to that capacity that sales projections indicate that the market can absorb. Dependent upon demand, the analysis will indicate whether the marketable capacity is at capacity, over capacity (inflationary), or under capacity (deflationary).

APPLICATION RATE is the quantity (mass, volume or thickness) of material applied per unit area.

Suggest a Term

Enter Search Term

Enter a term, then click the entry you would like to view.