Requiring managers to prepare the budgets from scratch or zero-base may help them to overcome the problem of:

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Requiring managers to prepare the budgets from scratch or zero-base may help them to overcome the problem of embedded budget slack, which refers to the tendency of managers to build cushion or slack into their budgets that is not necessary for achieving a particular goal or objective. With zero-base budgeting, managers justify every dollar in their budget, which can help to eliminate unnecessary expenditures and reduce budget slack. However, it may not necessarily address other problems such as motivation or unattainable targets.

Requiring Managers to Prepare the Budgets from Scratch or Zero-Base