The process of developing budget estimates by requiring all levels of management to estimate sales, production, and other operating data as though operations were being initiated for the first time is referred to as:
A) flexible budgeting
B) continuous budgeting
C) zero-based budgeting
D) master budgeting

Question

Quizplus · Accepted Answer

Zero-based budgeting requires managers to start their budgeting process from scratch and justify all expenses, unlike traditional budgeting where previous year's budget is adjusted for any changes. This process encourages cost savings, efficiency, and helps identify areas of waste.

The Process of Developing Budget Estimates by Requiring All Levels