What does the zero-based budgeting philosophy claim about prior spending levels?

The zero-based budgeting philosophy posits that prior spending levels are irrelevant and can be misleading when constructing future budgets. Instead, this approach advocates for starting each budgeting period from a "zero base," requiring budget managers to justify every expense anew, rather than simply adjusting previous budgets. This method encourages a thorough reassessment of needs and priorities and helps to eliminate wasteful spending that can accumulate over time if previous budgets are used as a baseline. By focusing on current objectives and needs, organizations can allocate resources more effectively and ensure that every dollar spent aligns with strategic goals. This stands in contrast to budgeting practices that rely heavily on historical data, which may not accurately reflect current circumstances or future needs.