What is an advantage of zero-based budgeting?
A) It's based on previous budget rules, which makes it easier to create.
B) It doesn't require justification of each dollar spent, which makes it more flexible than most budgets.
C) The accounting department leads the process, making it less strenuous on the marketing department.
D) It forces new consideration of marketing tools and tactics to be used in the period, making it more relevant for decisions making.

Question

Quizplus · Accepted Answer

Zero-based budgeting requires each expense to be justified for each new period, starting from a "zero base." This process encourages a critical examination of marketing tools and tactics, ensuring that the budget is allocated to the most effective and relevant areas for decision-making.

What Is an Advantage of Zero-Based Budgeting