Unlike cash flow analysis, zero-based budgeting _____.
A) requires managers to outline a budget from scratch each year
B) helps to track a business's liquidity, efficiency, and profitability over time
C) predicts how changes in a business will affect its ability to take in more cash than it pays out
D) provides a snapshot of a company's financial position at a particular time

Question

Quizplus · Accepted Answer

Zero-based budgeting requires managers to start from scratch each year and justify every dollar spent, whereas cash flow analysis focuses on tracking how much cash a business is bringing in and paying out over time.

Unlike Cash Flow Analysis, Zero-Based Budgeting _____