ZBB
Business & Finance abbreviation · Accounting
| Stands for | Zero-based budgeting |
|---|---|
| Categories | Business & Finance |
ZBB stands for Zero-based budgeting, an accounting abbreviation.
Budgeting approach in which every expense must be justified from zero for each new period, rather than adjusting last year's budget up or down. Managers build budgets from the activities actually needed.
Example: After adopting ZBB, the consumer goods company cut its marketing overhead by 15 percent.
Usage notes
Peter Pyhrr developed ZBB at Texas Instruments in the late 1960s, and Jimmy Carter introduced it in the federal government after using it as governor of Georgia. Investment firm 3G Capital revived it in the 2010s at companies such as Kraft Heinz. Critics say it is time-consuming and can encourage short-term cost cutting.
Related abbreviations
More accounting abbreviations
- ABC – Activity-based costing
- AFS – Available for sale
- AICPA – American Institute of Certified Public Accountants
- AJE – Adjusting journal entry
- AOCI – Accumulated other comprehensive income
- AP – Accounts payable
- AR – Accounts receivable
- ASC – Accounting Standards Codification
- ASU – Accounting Standards Update
- B/S – Balance sheet
- BEP – Break-even point
- BV – Book value