Which one of the following choices represents alternatives to traditional budgeting approaches?

Question

Quizplus · Accepted Answer

The alternatives to traditional budgeting approaches are Activity-based budgeting (ABB), kaizen budgeting, and zero-base budgeting (ZBB). These approaches are different from the traditional budgeting approach that just focuses on incremental changes in the budget from the previous year. ABB focuses on identifying the activities that incur costs and building the budget around those activities. Kaizen budgeting focuses on continuous improvement and incremental changes in the budget. ZBB requires managers to justify all expenses, starting from zero, each year. These approaches foster a more dynamic and flexible approach to budgeting than traditional methods. Therefore, the best choice is D, which includes all the alternatives mentioned.

Which One of the Following Choices Represents Alternatives to Traditional