In zero-based budgeting, each project has to stand on its own merits each year by being included among the important projects that a firm can afford to fund and no project receives funding for the future simply because it received funding in the past.

Question

Quizplus · Accepted Answer

This statement accurately describes the concept of zero-based budgeting. The approach requires each project to be evaluated and justified each year based on its potential impact and benefits, rather than automatically receiving funding simply because it was funded in the past.

In Zero-Based Budgeting, Each Project Has to Stand on Its