Zero-Based Budgeting
Building budgets from zero; justifying each expense without reference to previous budgets.
Real World
When Elon Musk took over Twitter in 2022, he applied zero-based budgeting logic — demanding each team justify its headcount and spending from scratch, leading to mass redundancies across departments.
Exam Focus
For 'evaluate' questions, weigh ZBB's time cost against waste reduction; always link to business context.
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