Zero-based budgeting requires managers to justify all costs of programs as if these programs were being proposed for the first time.

Question

Quizplus · Accepted Answer

Zero-based budgeting is a budgeting methodology where all expenses must be justified for each new period or budget cycle. This requires managers to start from a zero base and justify every expense, including those that were previously approved. Therefore, it's true that zero-based budgeting requires managers to justify all costs of programs as if these programs were being proposed for the first time.

Zero-Based Budgeting Requires Managers to Justify All Costs of Programs