A budget where managers must justify all costs based on need is a(n)
A)zero-base budget.
B)participatory budget.
C)continuous budget.
D)incremental budget.

Question

Quizplus · Accepted Answer

A budget where managers must justify all costs based on need is called a zero-base budget. Zero-base budgeting requires managers to justify every expense item in the budget, every year. This budgeting approach differs from traditional, incremental budgeting, which starts with the previous year's budget and adjusts for inflation or other factors. Zero-based budgeting is a time-consuming process, but it ensures that budgeted resources are deployed systematically and deliberately where they are most needed.

A Budget Where Managers Must Justify All Costs Based on Need