The main advantage of using zero based budgeting is that it:
A) Is easy to implement.
B) Forces managers to focus on desired outcomes
C) Reduces the need for managers to estimate costs
D) Simplifies calculating variances compared to a static or a flexible budget

Question

Quizplus · Accepted Answer

Zero-based budgeting requires managers to justify all expenses for each new period, starting from a "zero base," which encourages a focus on achieving desired outcomes rather than merely adjusting previous budgets. This process ensures resources are allocated efficiently and effectively towards achieving specific goals.

The Main Advantage of Using Zero Based Budgeting Is That