Which approach helps in structuring budget priorities based on comprehensive reviews?

Zero-based budgeting is a budgeting approach that requires all expenses to be justified and approved from scratch for each new period. This means that every budget cycle begins with a "zero base," and budget items are prioritized based on their needs and alignment with organizational goals rather than on historical spending patterns.

This comprehensive review process allows organizations to focus on current and future needs rather than simply rolling over past budgets. As a result, it effectively identifies critical priorities, allocates resources efficiently, and encourages innovative ideas for cost savings and improved efficiency. By evaluating each department's functions and their associated costs, zero-based budgeting ensures that resources are used effectively in accordance with strategic objectives.

In contrast, rolling budgeting, fixed budgeting, and historic budgeting all rely more heavily on previous budgets or fixed parameters that may not adequately reflect the changing needs of the organization. This makes zero-based budgeting a unique and effective method for establishing budget priorities.