think about the process of zero-based budgeting. what might one drawback of this method be?

One key drawback of zero-based budgeting (ZBB) is that it is very time- intensive and resource demanding. Unlike traditional budgeting, where adjustments are made based on the previous year's budget, ZBB requires building the entire budget from scratch every cycle. This involves detailed analysis, justification of every expense, extensive collaboration across departments, and frequent reviews. The process can be costly, complex, and may strain smaller organizations or teams with limited capacity. Additionally, ZBB can lead to a short-term focus where funds are shifted to areas that bring quick returns, potentially neglecting important long-term projects such as research and development. It may also introduce uncertainty and stress among departments that need to justify their budgets each cycle, sometimes causing internal competition or fear of budget cuts. Overall, while ZBB improves accountability and cost management by requiring justification of all expenses, the significant time commitment, complexity, and short-term bias are notable disadvantages.