Zero base budgeting is a managerial tool developed in 1962 by Jimmy Carter that considers each year as a new year for budget preparation without reference to previous years. It focuses on forecasting future activities and cost-benefit analysis of decision packages to prioritize allocation of resources according to organizational objectives. Some key benefits include more accurate resource allocation based on priority, enhanced managerial capability, and optimum utilization of resources. The application of zero base budgeting involves identifying decision units, developing decision packages around objectives, and reviewing/ranking packages.