Which of the following is true about zero-based budgeting?
A)It is a variant of program budgeting.
B)It requires activities of the entity to be evaluated over a five-year period.
C)It currently is used by most state and local governments.
D)It is incremental in approach.

Question

Quizplus · Accepted Answer

Zero-based budgeting is a variant of program budgeting where all activities of an entity are evaluated and prioritized based on their contribution to achieving specific goals and objectives, and budget is allocated accordingly. It does not require activities to be evaluated over a five-year period, nor is it currently used by most state and local governments. It is not incremental in approach as it does not build on the previous year's budget but starts from scratch every year.

Which of the Following Is True About Zero-Based Budgeting