Which of the following is a characteristic of zero-based budgeting?
A)Used in the public sector where the entity is generally told what areas it shall operate in
B)Involves the budget being built from the lowest level of management upward,starting at the 'coal face' with workers actually on the job
C)The budget for virtually every activity is set initially to nil,then to receive a budget allocation the manager must justify each activity in terms of its ability to meet the objectives of the business
D)The budget is developed from a ranking of employees,determined by their relative contribution to the business objectives.

Question

Quizplus · Accepted Answer

Zero-based budgeting involves the budget for virtually every activity being set initially to nil, and then to receive a budget allocation, the manager must justify each activity in terms of its ability to meet the objectives of the business. This is different from traditional budgeting methods where past year's budgets are used as a starting point.

Which of the Following Is a Characteristic of Zero-Based Budgeting