Which one of the following is a benefit of zero-based budgeting?
A) Items that cannot be justified on their current merits will not be allocated money.
B) It requires less time to create than an incremental budgeting approach.
C) Managers can rely on last year's budget to identify patterns.
D) Expensive items can be justified based on their historical merits.

Question

Quizplus · Accepted Answer

Zero-based budgeting requires managers to justify each item in their budget, rather than relying on the previous year's budget as a starting point. This means that items that cannot be justified on their current merits will not be allocated money, which can lead to more efficient use of resources.

Which One of the Following Is a Benefit of Zero-Based