Why is zero-based budgeting used?

Question

Quizplus · Accepted Answer

The Answer is The following are definitive strengths of zero-based budgeting, and can help to encourage its use:
• Good planning and the establishment of goals are required to approve or deny costs or to pay for new or old items or programs.
• Management must systematically review and evaluate activities and rank them in order of importance.
• Follow-up evaluation of the approved expenses or activities is heavily encouraged.
• The controller and management have more control over the operation because they must monitor more closely the ongoing expense activities and their results; and there is improved communication among managers within the functions and throughout the organization's management levels.

Why Is Zero-Based Budgeting Used