What is the difference between ZBB and ABB?

ZBB stands for Zero Based Budgeting while ABB stands for Activity-Based Budgeting. ZBB means that all of the expenses would need to be analyzed for every period. All of the needs and the costs of the organization can be checked so that all of the budgets would be for the next period.

ABB is the process used when you want to create proper budgeting that will be effective for the business. The ABB will make sure that the various potential of the organization will be maximized. When the company is able to find the right budget, they can surely improve the way that they can improve their companies and so much more.