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Question
The budgetary system that requires each budgeting unit to justify all costs in each year rather than year-to-year cost change is called:
A. Incremental budget
B. Rolling budget
C. Flexible budget
D. Zero-based budget
E. Program planning budgetary system
Answer
Answer: D
Explanation:
Zero-based budgeting is a method where all expenses must be justified for each new period. Unlike traditional budgeting, no reference is made to the previous year’s budget, making it necessary to start from zero and build a budget based solely on the needs and costs for the current year.
- Tags: Budgeting, Flexible Budget, Incremental Budget, Zero-Based Budget
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