zero based budgeting & kaizen budgeting

Zero-based budgeting is a budgeting process where all expenses must be justified for the new period starting from zero rather than using the previous budget as a baseline. It was developed in the 1960s by Jimmy Carter and requires evaluating all budget items and activities from scratch each period to determine what should be funded. While it provides benefits like improving cost-effectiveness and strategic alignment, it is also very time-intensive and complex compared to traditional incremental budgeting.