Zero-based budgeting requires all expenses to be justified from scratch, rather than based on prior year budgets, promoting transparency, discipline, and alignment with strategic priorities. It eliminates padded costs, compels managers to connect spending with business value, and fosters cultural change toward cost accountability. The process involves categorizing costs, aligning with KPIs, and building budgets from the ground up, often revealing outdated or unnecessary expenses. Success depends on tools that support collaboration, version control, workflows, and integrated analytics, enabling agility and accuracy. Though more demanding, zero-based budgeting drives efficiency and better decision-making.

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