what are the disadvantages of zero based budgeting 
zero based budgeting has several disadvantages it s time and resource intensive the time cost involved may not be worthwhile because a new budget is developed each period using a modified budget template instead may prove more beneficial 3zbb may reward short term perspectives in the company by allocating more resources to operations with the highest revenues areas such as research and development or those that have a long term horizon may be overlooked as a result the bottom linezero based budgeting zbb justifies all expenses for each new period the process begins from a zero base analyzing every function within an organization for its needs and costs budgets are then built around what s needed for the upcoming period regardless of whether each budget is higher or lower than the one before 