Which budgeting method requires justification for expenditures at each budget cycle?

Zero-based budgeting requires that each budget cycle starts from a "zero base," meaning all expenses must be justified for each new period. This method emphasizes the need for justification of all proposed expenditures, rather than just adjusting previous budgets. In this way, every function within an organization is analyzed for its needs and costs, ensuring that all allocations are based on current necessity rather than historical spending patterns. This approach promotes efficiency and can highlight wasteful practices, as every program or project must demonstrate its value and effectiveness before budget approval.

In contrast, program budgeting often ties funding to specific programs or outcomes rather than requiring a justification for each individual expenditure. Line-item budgeting focuses on listing expenditures by category without necessarily requiring justification for each item at every cycle. Matrix budgeting, on the other hand, often combines aspects of different budgeting methodologies but does not emphasize justification from a zero baseline.