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The method that requires every organization unit to justify its budget from scratch is zero-based budgeting. This approach starts from a "zero base," meaning that all expenses must be justified for each new period, rather than being based on the previous budget or historical spending. In zero-based budgeting, every function within an organization is analyzed for its needs and costs, rendering it necessary to thoroughly evaluate and prioritize every element of the budget. This process encourages a comprehensive review of operations and can potentially lead to more efficient allocation of resources since it often highlights areas that may not provide justified value to the organization.

The nature of zero-based budgeting makes it distinct from other methods such as baseline budgeting, where prior budgets serve as the starting point, and performance and program budgeting, which generally focus on evaluating specific programs or performance outcomes rather than starting from ground zero.