Zero-Based Budgeting is a budgeting method where every expense must be justified for each new period, starting from a "zero base." Unlike traditional budgeting, which often adjusts previous budgets, this approach requires managers to build their budgets from scratch, ensuring that all expenditures align with current goals and priorities. This method encourages careful evaluation of all costs, promoting efficiency and resource allocation. By focusing on the necessity of each expense, Zero-Based Budgeting helps organizations identify wasteful spending and prioritize essential activities, ultimately leading to better financial management and decision-making.