Zero-based budgeting:
A) Requires justification for any new increases in requested amounts
B) Means that managers will have little or no work to prepare their budget requests
C) Requires managers to justify all funds requested
D) Is used as a means of reducing the paperwork involved with the budget process

Question

Quizplus · Accepted Answer

Zero-based budgeting requires managers to justify all funds requested, starting from zero instead of basing the new budget on the previous year's budget. This approach aims to reduce unnecessary spending and increase efficiency by prioritizing programs and activities based on their importance and value.

Zero-Based Budgeting