Zero-Based Budgeting
Zero-Based Budgeting (ZBB) is a budgeting methodology where every expense must be justified for each new period, starting from a 'zero base', rather than using previous budgets as a baseline. It requires managers to analyze and justify all costs, promoting efficiency and cost control by eliminating unnecessary expenditures. This approach contrasts with traditional incremental budgeting, which often adjusts prior budgets without thorough re-evaluation.
Developers should learn Zero-Based Budgeting when working in roles involving project management, resource allocation, or financial planning for software development, as it helps optimize budgets for tech projects, startups, or agile teams by ensuring funds are allocated based on current needs rather than historical spending. It is particularly useful in dynamic environments like software development where priorities shift frequently, enabling better alignment of resources with strategic goals and reducing waste in areas like cloud computing costs or tool subscriptions.