Morrison Manufacturing (MM) creates a budget for projects or activities in each new budget period as if it were brand new. It does not renew any of the past funding. MM is using a(n) _____ budgeting approach.
A) nonmonetary
B) operating
C) zero-based
D) fixed
E) flexible

Question

Quizplus · Accepted Answer

The scenario describes zero-based budgeting, where each budget period starts from scratch and all costs must be justified and approved, regardless of whether they were included in past budgets.

Morrison Manufacturing (MM) Creates a Budget for Projects or Activities